What is the main objectives of the firm?
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Shareholder Wealth Maximisation
Shareholder’s gain wealth through capital gains (increases in share price) and through the receipt of dividends. Due to the vague and complicated nature of this objective other objectives are commonly suggested as possible substitutes. examples of such substitute objectives are:
•Profit maximisation
•Sales maximisation
•Survival
•Improved efficiency
•Social Responsibility
Stakeholder Value Maximisation
A stakeholder is anyone that has an stake in a company, e.g. shareholders, employees, suppliers, etc. The stakeholder value maximisation view argues that in order for a firm to function it must be able to satisfy all of its key stakeholders, not just its shareholders.
Legal position
http://www.brookings.edu/~/media/research/files/papers/2012/6/18%20corporate%20stout/stout_corporate%20issues.pdf
http://www.enterpriseethics.org/Portals/0/PDFs/good_business_chapter_07.pdf http://bizfinance.about.com/od/Basic-Financial-Management/a/what-is-shareholder-wealth-maximization.htm
