CIMA BA1 · Chapter 4 · Question 2 of 9
In financial and economic theory, the primary objective of a commercial company is usually assumed to be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Maximising the wealth of its shareholders
Explanation
Shareholders own the company, and the conventional assumption is that it should be run to maximise their wealth, closely linked to long-run profit maximisation. Other aims may be pursued as constraints or as secondary objectives.
More Goals of organisations and stakeholders MCQs
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