The goal of a for-profit business is to maximize the value of existing __________.Multiple choice question.debt holdersshareholder equitycustomersmanagers

The correct answer to the question "The goal of a for-profit business is to maximize the value of existing __________" is shareholder equity.

Explanation

For-profit businesses operate primarily with the intention of generating profits for their owners or shareholders. In this context, the term "maximize shareholder equity" means that the ultimate goal of the business is to increase the wealth of its shareholders, who invest in the company expecting a return on their investment.

1. Debt holders are interested in the company’s ability to repay their loans, but they do not have ownership stakes in the business.
2. Customers are important as they drive revenue, but the primary goal of a business is not to maximize their value.
3. Managers are responsible for running the company efficiently, but their interests should ultimately align with maximizing shareholder wealth.

Thus, maximizing shareholder equity aligns with the principal objective of for-profit businesses, which is to create value for their investors.