BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer and Explanation: The correct answer is (b) Maximize the market value of the stock. The main motive of a publicly-owned firm is to maximize the shareholder value by generating profits.

Detailed explanation-2: -The main goal of virtually every publicly-owned company has always been to maximize shareholder value by generating as much profit as possible. However, many companies have begun to balance this primary objective with other social and environmental goals that help appease stakeholders and help produce those profits.

Detailed explanation-3: -Shareholder wealth maximization is the idea that the main goal of a business’s managers should be to increase its stock price as much as possible.

Detailed explanation-4: -Corporate management and investor actions have focused almost exclusively on increasing shareholder returns as the primary goal and determinant of corporate success. The doctrine is referred to commonly as the shareholder wealth maximization theory (SWM or simply “shareholder theory”).

Detailed explanation-5: -Maximizing shareholder wealth is often a superior goal of the company, creating profit to increase the dividends paid out for each common stock. Shareholder wealth is expressed through the higher price of stock traded on the stock market.