Ask Question
BusinessBusiness
13 December, 02:17

The primary goal of a firm's management is to do what? Select one:a. Maximize owner's share of earningsb. Maximize owner's wealthc. Maximize the firm's salesd. Maximize the firm's assets

+3
Answers (1)
  1. 13 December, 02:41
    0
    b. Maximize owner's wealth.

    Explanation:

    The owners wealth is usually measured by the financial behaviour of shares. In that sense we can find two reasons why is so important for the firm's management.

    1. The managers recieve a greater compensation when the performance of the share increases their value. The managers have an incentive in order to keep the price of shares high.

    2. Is a market oriented reason. For shareholders, consumers, banks and stakeholders, a good performance of the share is a positive signal for future investments, quality of the services and products and stability in the long run.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The primary goal of a firm's management is to do what? Select one:a. Maximize owner's share of earningsb. Maximize owner's wealthc. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Bank reconciliation information for Kaden Co. for May 31 is as follows: (a) The bank statement balance is $2,936. (b) The cash account balance is $3,194. (c) Outstanding checks amounted to $465. (d) Deposits in transit are $655.
Answers (1)
In 1993 the Federal government boosted income tax rates. In the seven years that followed:A. tax revenues expanded rapidly. B. the unemployment rate increased. C. tax revenues fell slightly. D. productivity growth slowed.
Answers (1)
When your wages rise, the: 1. opportunity cost of an hour of leisure increases. 2. opportunity cost of an hour of leisure stays the same. 3. opportunity cost of an hour of work decreases. 4. cost of working increases.
Answers (1)
ZipCar locates its cars on many college campuses. Due to the high concentration of Millennials on campuses, it is likely that ZipCar can serve more of its members with a smaller number of cars per member on these campuses than in areas that have a
Answers (1)
Values tend to vary across generations because they are influenced by events in childhood and youth. For example, some parents lived through the Depression, and this experience led them to be risk takers in terms of their investments.
Answers (1)
New Questions in Business
Green Glass recently pays dividends. Future dividends are projected at $2.5, $3.5, and $4.5 over the next three years, respectively. Beginning four years from now, the annual dividend is expected to grow at 4% annually forever.
Answers (1)
What are two tasks (out of several) commonly performed by operating systems?
Answers (1)
Question 2 1 pts How much is the fine for your thost offense for failure to keep insurance? $1000 $400 $200 $20
Answers (2)
A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of them before the end of the second quarter, and holds the others in its warehouse. How will the 200,000 unsold DVDs be treated in the GDP statistics?
Answers (1)
Which is a primary activity in Porter's value chain model? A. finance B. procurement C. human resources D. outbound logistics
Answers (1)
Home » Business » The primary goal of a firm's management is to do what? Select one:a. Maximize owner's share of earningsb. Maximize owner's wealthc. Maximize the firm's salesd. Maximize the firm's assets
Sign Up Forgot Password?