What is the primary goal of the corporation?
A) Maximize the pay and compensation of employees and managers of the firm.
B) Maximize the value of the stockholders as they are the owners of the corporation.
C) Maximize the wealth of all mistakeholders if the firm wants to continue to exist.
D) Maximize the societal value to minimize governmental interference.

Question

Quizplus · Accepted Answer

The primary goal of the corporation is to maximize the value of the stockholders as they are the owners of the corporation. This is known as shareholder primacy and is the most widely accepted view among economists and business leaders. Maximize the wealth of all stakeholders is important but it can be achieved only by maximizing the value of the stockholders.

What Is the Primary Goal of the Corporation