What is the primary goal of the corporation
Prompt:
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 long-term 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.
Defend your answer and do your best to back it up with research!
Response Prompt:
In your response, don’t simply agree and thank the author for their submission. Treat this as you would a classroom discussion where you ask questions, perhaps you disagree, perhaps you have an example to bring to the discussion. If you do ask a question, be sure to come back to that thread and read the response. I also encourage external resources for your posts and please be sure to cite them properly.
Here is a little paragraph and a link you might need.
Purpose Statement: Corporate governance has become a topic of broad public interest as the power of institutional investors has increased and the impact of corporations on society has grown. Yet ideas about how corporations should be governed vary widely. People disagree, for example, on such basic matters as the purpose of the corporation, the role of corporate boards of directors, the rights of shareholders, and the proper way to measure corporate performance. These chapters will help give you the foundational understanding you need to succeed in this course.
https://hbr.org/2019/10/a-guide-to-the-big-ideas-a
Answer preview to what is the primary goal of the corporation
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