MANAGEMENT

Detailed explanation-1: -At its most basic level, maximizing profits and ultimately stock prices depend on increasing revenues and decreasing costs associated with the products or services sold. Good management will produce earnings and industry growth, which will boost firm-specific sales.

Detailed explanation-2: -Shareholder wealth maximization means that a company’s primary goal is raising its stock price. Shareholder wealth maximization can be a good thing because it gives a firm’s managers a clear objective that builds value.

Detailed explanation-3: -Wealth maximization is the concept of increasing a firm’s worth to increase the value of stockholders’ shares. Wealth maximization is also known as net worth maximization.

Detailed explanation-4: -Shareholders wealth maximization criterion proposes that a business concern should only consider the decisions that maximize the market value of the share or the shareholders’ wealth. The market value of share is treated as an indicator of efficiency and effectiveness of the firm.