Question

Why do all shareholders agree on the same goal for the financial​ manager? ​(select all the choices that​ apply.)

a. all of the decisions by the financial manager are made within the context of the overriding goal of financial managementlong dash—to maximize the wealth of the​ owners, the stockholders.

b. the stockholders have invested in the​ corporation, putting their money at risk to b?

Answer 1

The choices that apply are both (A) and (B).

Financial managers generally make decisions on behalf of their customers, which are to maximize the wealth of the stockholders – the people who bought the stocks from the company that the financial manager recommends them to buy. Since they focus on wealth management for the customers – this is their primary concern.