Which of the following best describes the goal of the firm?
A)The maximisation of the total market value of the firm's common stock
B)Profit maximisation
C)Risk minimisation
D)None of the above

Question

Quizplus · Accepted Answer

Maximisation of the total market value of the firm's common stock is considered the primary goal of the firm in financial management. It involves taking decisions that would increase the wealth of the shareholders and make the firm stand strong in the market. Profit maximisation and risk minimisation are secondary goals that contribute to the primary goal. Therefore, option A is the best choice.

Which of the Following Best Describes the Goal of the Firm