The primary goal of a publicly owned corporation is to ________.
A) maximize dividends per share
B) maximize shareholder wealth
C) maximize earnings per share after taxes
D) minimize shareholder risk

Question

Quizplus · Accepted Answer

The primary goal of a publicly owned corporation is to maximize shareholder wealth, which is achieved by maximizing the value of the company's stock. This can be accomplished by increasing profits, expanding market share, and making strategic investments that generate a return for shareholders. While dividends and earnings per share are important indicators of financial performance, they are not the primary goal of the corporation. Likewise, while minimizing risk is important for shareholders, it is not the primary goal of the corporation.

The Primary Goal of a Publicly Owned Corporation Is to ________