The goal of a firm’s management is to maximize the firm’s value, which is in the best interests of the firm’s owners.A. TrueB. False

Evaluation of the Statement

1. Understanding Firm Value Maximization

   • The fundamental principle of corporate finance is that the primary goal of management should be to maximize shareholder wealth, which directly correlates to maximizing the firm's value.

2. Owner's Interests

   • The firm's owners (shareholders) benefit when the firm increases in value through profits, dividends, and stock price appreciation.

3. Management Responsibilities

   • Effective management aligns its strategies and decisions with maximizing the firm's value, which includes making sound operational, financial, and strategic choices.

Conclusion

After analyzing the relationship between firm management and owners' interests, the statement is indeed aligned with the goal of firm management.

Final Answer

A. True