Question

Which one of the following is the best example of an organizational goal? a) Ensuring that costs exceed benefits b) Maximizing shareholder value c) Paying significant dividends. d) Launching a new product that is known to have a potential defects.

Answer 1

The best example of an organizational goal amongst the options given is 'Maximizing shareholder value', as it aligns with a corporation's legal and financial obligations to its shareholders. (option b)

Step-by-step explanation:

The question asks to identify the best example of an organizational goal from the provided options. Based on the information given, which mentions that corporations have a fiduciary obligation to their shareholders to maximize profit, the best example of an organizational goal is:
b) Maximizing shareholder value.

Ensuring costs exceed benefits is not a goal for any successful organization. Paying significant dividends is a potential outcome of achieving organizational goals but not a goal in itself. Launching a defective product would be against the long-term interests of an organization and is not a responsible goal.

Therefore, maximizing shareholder value aligns with the legal and financial obligations of a corporation to its shareholders, making it the best example of an organizational goal.

Hence, the answer is option b