Answer To: Chapter 1 reiterates the common idea that the goal of the firm is to maximize shareholder wealth....
Lekha answered on Mar 22 2022
2
Stakeholders of an organization
STAKEHOLDERS OF AN ORGANIZATION
The goal of the any firm is to maximize shareholder’s wealth. I believe this statement to be correct.
Any organization work for their shareholders. Hence, the main objective of an organization is to protect the interests of their shareholders as they are the one invested in the company. The performance of the organization directly impacts the shareholders as they are the beneficiaries. Therefore, the existence of an organization revolves around the shareholders. So, a company is always focused on operations which would give fruitful results to the shareholders.
Shareholders review the overall performance of the companies they invest in from time to time. For example, there are annual general meetings held where the...