BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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-2: -A firm’s primary objective is the maximization of shareholders’ wealth, but that doesn’t mean its CEO should be focused on increasing his or her own wealth. Instead, each member of an organization should focus on increasing their own personal net worth by helping the company achieve its goals.

Detailed explanation-3: -According to finance, the goal of management ought to be to raise or maximize shareholders ‘ wealth, which may be accomplished by maximizing the firm’s stock value because the firm’s overall price is affected by the company’s financial performance and capacity to operate in the long term.

Detailed explanation-4: -Corporate strategy at its core concerns itself with the entirety of a business, where decisions are made in regard to its overall growth and direction. Ultimately, corporate strategy strives to create value, develop a unique marketing advantage, and seize maximum market share.

Detailed explanation-5: -The finance literature argues that managers should seek to increase the value of the firm. The value maximization aims to maximize the firm’s value when a decision is made, whether it is an investment decision, financing decision, dividend payment decision, or hedging decision.