Author Question: Name and discuss two main goals of finance. Are these goals mutually exclusive? Explain your ... (Read 157 times)

kamilo84 · **on:** Jul 14, 2018

Name and discuss two main goals of finance. Are these goals mutually exclusive? Explain your answer.

Question 2

The purchase of one corporation by another is called a merger.

Indicate whether the statement is true or false

yeungji · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

Historically, the goal of financial management has been to find the sources and uses of funds that maximize the value of a firm to its owners. However, today's business organizations also recognize the need to address the concerns of all stakeholders, from employees to suppliers to society as a whole.
Financial managers generally recognize that the goal of maximizing shareholder wealth can be consistent with this broader view of social responsibility-especially if the managers take a long-term perspective. Treating customers, employees, suppliers, creditors, and other stakeholders with fairness and respect can build goodwill. This often results in satisfied customers, higher sales, a more favorable business climate, and more loyal and highly motivated workers, all of which contribute to a more successful and profitable company and an increase in shareholder value.

Answer to Question 2

True