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
Question
Solution 1
Evaluation of the Statement
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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.
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Owner's Interests
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