Why do all shareholders agree on the same goal for the financial​ manager? ?

Why do all shareholders agree on the same goal for the financial​ manager? ?

Answers

Most likely because they are directly financially benefiting from a financial managers good performance through their shares of stock.

A. All of the decisions by the financial manager are made within the context of the overriding goal of financial management to maximize the wealth of the​ owners, the stockholders

D. The stockholders have invested in the​ corporation, putting their money at risk to become the owners of the corporation.

Explanation:

Shareholders agree on the same goal for the finance manager . The goal is to maximize shareholders wealth by adding values of the organisation in the form of market capitalization of the company or organisation. They put their money at risk to become owner of the corporation . They employ managers to manage the affairs of the business so that value of the organisation is maximized.

The choices that apply are both (A) and (B).

Financial managers generally make decisions on behalf of their customers, which are to maximize the wealth of the stockholders – the people who bought the stocks from the company that the financial manager recommends them to buy. Since they focus on wealth management for the customers – this is their primary concern.

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