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Homework answers / question archive / What is the core objective/goal of a firm? Being a Student of Business Finance, what would you recommend to achieve the core objective/goal of the firm?
What is the core objective/goal of a firm? Being a Student of Business Finance, what would you recommend to achieve the core objective/goal of the firm?
The core objective of the company is to maximize the rate of return of the shareholders because it will always try to focus upon maximisation of the shareholders wealth and shareholders wealth can only be maximized through maximization of the market price and providing the shareholders with the dividend, so maximization of the share price and increase of the shareholders worth is is primary goal of company.
I will be always advocating for proper ethical performance by the company which is undertaken through sustainable development and selection of best capital budgeting projects to maximize the rate of return which will help in capitalisation of the shareholders in the long run so it will increase the share price as well and it will also increase the profits of the company.