Which of the following is an appropriate goal for a firm?
A) Profit maximization
B) Revenue maximization
C) Stockholder's wealth maximization
D) Tax minimization

Question

Quizplus · Accepted Answer

Stockholder's wealth maximization is an appropriate goal for a firm because it takes into account the long-term interests of the company's owners, rather than just focusing on short-term financial gains. This goal encourages managers to make decisions that will increase the value of the company's stock over time, which benefits both the shareholders and the firm as a whole. The other options, such as profit maximization and revenue maximization, can lead to short-term thinking and may not be in the best interest of the company's overall success. Tax minimization is also not a primary goal for a firm, but rather a strategy to reduce costs and increase profits.

Which of the Following Is an Appropriate Goal for a Firm