What is the proper goal for management of a firm?

Question

Quizplus · Accepted Answer

The proper goal for management of a firm is to maximize shareholder wealth, which takes into account both short-term and long-term considerations. This involves maximizing the value of the firm’s stock and paying dividends to shareholders, while also investing in projects and initiatives that will generate sustainable growth and profitability over time. Maximizing net income, sales revenue, or minimizing expenses may be important considerations, but they should be viewed as means to the ultimate goal of maximizing shareholder wealth.

What Is the Proper Goal for Management of a Firm