The Primary Goal of Corporate Management Should Be To

question 75

Multiple Choice

The primary goal of corporate management should be to:

• A) maximize the number of shareholders.
• B) maximize the firm's profits.
• C) minimize the firm's costs.
• D) maximize the shareholders' wealth.

---

Definitions:

Economies Of Scope

Exist when the cost of producing two products jointly is less than the cost of producing those two products separately.

Economies Of Scope

Describes cost advantages that businesses experience when they increase the variety of goods or services they offer, utilizing shared operations or resources.

Economies Of Scope

Cost advantages that enterprises obtain due to a larger scope of operations, where producing a wider variety of goods or services results in lower average costs.

Economies Of Scope

Cost advantages that result from a firm's ability to produce multiple products more efficiently together than separately.