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. This means that the management team should focus on creating value for shareholders through strategic decision-making that ultimately leads to an increase in the stock price and return on investment. While maximizing net income, sales revenue, and minimizing expenses are important factors in achieving this goal, they are not the primary objective.

What Is the Proper Goal for Management of a Firm