Final answer:
The overall purpose of a corporation is to maximize the long-term return to the owners (shareholders) through dividends and capital gains.
Step-by-step explanation:
The overall purpose of a corporation is to maximize the long-term return to the owners (shareholders).
A corporation is owned by shareholders who invest capital in the company. The shareholders expect a positive return on their investment, which can come in the form of dividends or capital gains.
Dividends are direct payments made by a firm to its shareholders, while capital gains refer to the increase in the value of the stock or any asset over time.