Maximizing Shareholder wealth:
Correct answer: B. Does not relieve the firm's responsibility towards society
- A. Relieves the firms responsibility towards society
- B. Does not relieve the firm's responsibility towards society
- C. Partially relives the firm's responsibility towards society
- D. None of ThemHire Financial Advisors
Explanation
Maximizing shareholder wealth does not cancel a firm's legal, ethical, or social responsibilities; sustainable wealth creation generally requires attention to society and other stakeholders. Therefore, option b is the sound statement.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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