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What is the primary goal of the corporation? Maximize Wealth - should be the primary goal of the financial manager. Unlike profit ( earnings per
What is the primary goal of the corporation?
Maximize Wealth should be the primary goal of the financial manager. Unlike profit earnings per share, EPS maximization, wealth maximization considers the impact of current decisions on the longterm financial health of the firm.
Social Responsibility firms should be socially responsible at the same time they earn "normal" profits; otherwise they probably will go out of business.
Wealth Maximization and Social Responsibility actions that maximize the value of the firm also are beneficial to society; wealth maximization improves the standard of living.
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