From the owner's perspective, which of the following should be the goal of a firm? 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

From the owner's perspective, the appropriate goal of a firm should be the maximization of stockholder's wealth. It ensures that the value of the company is increased, which ultimately leads to higher returns for the shareholders. Profit maximization and revenue maximization are short-term goals that might not necessarily lead to long-term growth and sustainability. Tax minimization, while important, should not be the primary goal of a firm as it might compromise ethical and legal business principles.

From the Owner's Perspective, Which of the Following Should Be