What do you meant by not for profit objective of the firm?
Q: Does profit maximization always lead to shareholder’s maximization?
A: Profit Maximization: It is a traditional and narrow approach which aims at maximization of return by…
Q: what determines the market value of a company?
A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…
Q: Explain an example of profit oriented companies.
A:
Q: 3. How does operating leverage impact the operating risk and profit levels of a company?
A: Operating leverage measures the percentage increase in operating income which is a result of change…
Q: Can a company be profitable but not liquid? Explain.
A: Liquidity: It can be defined as the ease or quickness with which the short term assets of a company…
Q: why is profit maximization supposedly not the most important goal of a company
A: Profit Maximization: The process of raising the profit earning capacity of the business is known as…
Q: Is this situation consistent with a monopolistically competitive firm maximizing profit? If yes, is…
A: Market Economy- A market economy is an economic system in which market forces, rather than a central…
Q: If a firm could maximize either its current market price or its intrinsic value, whatwould…
A: Answer: Managers should focus on maximizing the intrinsic value. The intrinsic value increases…
Q: What do you see as some of the possible problems if shareholder value is seen as a strategy (and not…
A: Strategy refers to the financial approach for the planning of the functions that are based on a…
Q: Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O…
A: Every firm and its management must have a primary goal which it must focus on achieving. The primary…
Q: From a financial reporting standpoint, what form of compensation is most desirable for the firm?
A: The deferred payment option is defined as the right to operationally defer payment based on an…
Q: The agency problem is A. a result of the separation between management and owners of the firm. not…
A: 3. Agency problem refers to the conflict between management and shareholders. As per this theory,…
Q: Why is it that the goal of financial management is maximization of shareholders’ wealth rather than…
A: Financial management is defined as the planning, organizing, directing, and also the controlling of…
Q: What is return on marketing investment (rOMI)? howdoes considering marketing as an investment…
A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…
Q: What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are…
A: Explanation:- The principle of maximizing shareholder value (SWM) states that the goal of every…
Q: What can be said about a firm whose owners’ equity is a negative amount? How could such a situation…
A:
Q: equity does not represent the market value of the company
A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…
Q: Which of the following objectives of the company creates immoral practices such as: corrupt…
A: In Welfare maximisation, company works for the wellbeing of society, people, environment etc. If an…
Q: What is the relationship of WACC to the market value of a company?
A: A company's capital structure is the specific mix of debt and equity it employs to fund its overall…
Q: What goals might be persued by managers instead of maximization of shareholders wealth
A: Goals of financial management should be so articulated as to help achieve the objective of wealth…
Q: e balance sheet have in respect to evaluating the health of the firm?
A: Balance sheet of the firm shows the overall financial position of the company and show how much are…
Q: Is maximizing shareholder value inconsistent with being socially responsible?Explain.
A: Maximizing the shareholder's value is the highest goal for any organization as they are the owners…
Q: How does the goal of the firm influence the sales maximization and profit maximization decision.
A: The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the…
Q: How will a company view working capital – positive, negative, or a necessary evil?
A: The difference between current assets and current liabilities is used to calculate working capital.…
Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…
A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…
Q: If a firm's busines activities do not results in profit maximisation, whilst alternative exist,then…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: A goal of financial management is to maximize the shareholders' value. What are the pros and cons of…
A:
Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?
A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…
Q: What is the main goal of a firm? Is it to maximize profits or to maximize shareholder wealth? State…
A: The management of a firm can have many goals, which can include maximizing wealth and profits or…
Q: Justify favouring shareholders’ wealth maximisation over profit maximisation as the goal of a firm…
A: Profit maximization refers to maximizing rupee/dollar income of the firm. Shareholders’ wealth…
Q: What can you say about the market value of the company? is it positve or is negative?
A: In finance market value of a company is the worth of the company and the worth of the company is…
Q: What would be the business expectations when working with the added offer?
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: How does the value of a levered firm compare to the value of anunlevered firm that is otherwise…
A: When the company having debt in its capital structure it is referred to as a levered firm. When the…
Q: What is the goal of the firm? Elaborate with example?
A: The goal means the objective for which the corporation has been established or incorporated.
Q: What does the term hedging mean? Why do companies elect to follow this strategy?
A:
Q: What goals might be pursued by managers instead of maximization of shareholder wealth?
A: The shareholder wealth is the company revenue. The shareholder wealth is increased by increasing of…
Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…
A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…
Q: c) Explain why agency costs would probably be more of a problem for a large, publicly owned firm…
A: Agency cost arise due to the conflict of interest present in between management and shareholders.…
Q: Why is the profit maximization supposed not the most important goal of the company?
A: Solution Profit maximization is a process business firms undergo to ensure the best output and price…
Q: Can there be a difference between profit maximization and shareholder wealth maximization? If so,…
A: The companies have usually two goals such as profit maximization and wealth maximization. Profit…
Q: Which of the following is/are correct regarding agency costs? 1. Indirect costs occur when managers,…
A: Agency Costs: When there are actions that take place within a company (internally) and these…
Q: What are the main hindrances in valuation estimates in business valuati
A: Knowing how much an asset is worth and what factors influence its value is essential for making…
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- Maximizing revenue should be the goal of the firm Select one: a. True b. FalseWhich of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O b. maximize dividend payments Oc minimize expenses O d. satisfaction of suppliers39. If a firm's revenues are greater than costs, then the business would be considered: A. Marketable B. Profitable C. Solvent D. Declining E. Failing
- ASAP What is more important for a firm–profit maximization or value maximization? What issues orconflict of interest can come up between owners and managers and how can they be solved?Is this situation consistent with a monopolistically competitive firm maximizing profit? If yes, is it consistent with LR? PWhat is the objective of the firm? Why? (Explain)Is the use of PE multiple significant in order to understand the value of a firm?What is the validity of the following statements? (1) Modern business is characterised by a low level of indirect cost relative to direct cost. (2) Modern business is characterised by a capital intensive production. A B C D OO A Statement (1) True True False False (2) True False True FalseReact to this statement and cite an example “Whether or not it actually makesprofits is immaterial. An entity is still a business if it is objective is to make profit.SEE MORE QUESTIONS