Purchase Solution

What is the primary objective of the corporation?

Not what you're looking for?

Ask Custom Question

Question 1
What is the primary objective of the corporation and why is it the objective?

Question 2
How would you determine or measure the ability of a company to pay its bills?

Question 3
What are 3 limitations of ratio analysis?

Question 4
What is financial leverage and how would you measure it?

Question 5
Explain risk in a portfolio context.

Question 6
What does beta measure?

Purchase this Solution
Solution Summary

The primary objective of the corporation and why is it the objective is determined is determined. The measure ability of a company to pay its bills are determined.

Solution Preview

Question 1
What is the primary objective of the corporation and why is it the objective?

The main objective of the corporation is to maximize shareholders wealth. This is because shareholders own the company and they acquire stocks in the company so that they can get a good return on their investment. Generally, shareholders hire company directors who in turn hire manager s to manage the day to day business activities of the company. Since managers are indirectly hired by shareholders, they make policies that enhance shareholders value so that they can stay at their jobs. If a manager fails to deliver, he/she would be replaced.

Question 2
How would you determine or measure the ability of a company to pay its bills?

The ability of the company to pay its bills can be determined by the liquidity ratios. Liquidity ratio is a ...

Solution provided by:
Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
Recent Feedback
  • "Thank u"
  • "Thank You!"
  • "Thanks!"
  • "Thank you so much"
  • "Great job...thanks."
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • The Primary Objective (or Goal) of a Financial Manager in a Corporation

    Next, explain the concept of the primary objective of the firm; that is, what is the basic goal of the financial manager in a corporate form of business organization.

  • consolidation procedures

    The primary objective is to enable the stakeholders of the corporation to understand the economic standing of the corporation.

  • Corporate compensation and new regulations considering state

    338629 Discuss corporate compensation and new regulations considering state of the economy Primary Objective of the Corporation The primary objective of the corporation is value maximization.

  • The three forms of business organization and the advantages and disadvantages of each form

    For a corporation, what is the overall goal of the financial manager? What is the objective of this firm? Do you agree with this goal? Why or why not? What are the three forms of business organization?

  • Strategic Management

    Consider this scenario as though "Able" were a patient, very ill, being wheeled into the Trauma Ward of an Emergency Center. What is the primary task of the medical team with the ill patient?

  • Able Corporation

    Consider this scenario as though "Able" were a patient, very ill, being wheeled into the Trauma Ward of an Emergency Center. What is the primary task of the medical team with the ill patient?

  • Decision Tree

    The most important part of these questions is providing a complete narrative of all the steps you took in the decision process and the justification for the indicated recommended. So what I've done is to provide you with the steps.

  • McDonald's Pricing Strategy

    Assuming we are discussing the pricing objectives of McDonald's from a Marketing perspective, the main thing we want to remember is that our primary goal is to gain and retain the largest part of the market for our product.

  • What are the duties fulfilled by corporate positions?

    Although their primary objective, like any other type of business, is profit maximization, the complexities of a corporation are many. Not only do corporations have managers, they also have owners that are independent of the business entity.

View More Related Solutions