Aiming to Maximize Shareholder Wealth
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Can you please tell me if it is the goal of the firm to maximize shareholder wealth? Or, is the goal of the firm to provide value to customers with shareholder wealth being a residual effect? Or ... is there some other goal in the U.S. economy applicable to profit seeking firms (in other words, excluding government agencies, not-for-profit organizations, etc.)?
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Solution Summary
141 words on whether or not a firm's primary goal is to increase shareholder wealth.
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From a purely economic point of view, it is the goal of a firm to maximize its profits. However, in real terms, no firm would like to project its image as a selfish entity interested in its own wealth ...
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