File Edit Format View Help When someone opens a business, it is because they want to fulfill important personal financial goals. In publicly traded companies, managers and employees work on behalf of the shareholders, who own the business through their ownership of company stock. These managers and employees have an ongoing obligation to pursue projects, policies, and corporate investments that will increase or promote stockholder value over the long term. Although many companies focus on financially related goals, such as growth, earnings per share, and market share, the main financial goal is to create value for investors. Keep in mind that a company's stockholders are not just an abstract group. Like the sole business owner, they are individuals who have chosen to invest their hard-earned cash in a company. They are looking for a return on their investment in order to meet their own personal long-term financial goals, which might be saving for retirement, a new home, or college education for their children. In addition to increasing value, it is also important to realize that a firm has important nonfinancial goals Some examples of these might include the following: ⚫ Expanding sales to existing customers • Increasing customer loyalty to the weaker brands • Developing new products for current and potential customers ⚫ Becoming international by setting up an online ordering service Explain this without using ai
File Edit Format View Help When someone opens a business, it is because they want to fulfill important personal financial goals. In publicly traded companies, managers and employees work on behalf of the shareholders, who own the business through their ownership of company stock. These managers and employees have an ongoing obligation to pursue projects, policies, and corporate investments that will increase or promote stockholder value over the long term. Although many companies focus on financially related goals, such as growth, earnings per share, and market share, the main financial goal is to create value for investors. Keep in mind that a company's stockholders are not just an abstract group. Like the sole business owner, they are individuals who have chosen to invest their hard-earned cash in a company. They are looking for a return on their investment in order to meet their own personal long-term financial goals, which might be saving for retirement, a new home, or college education for their children. In addition to increasing value, it is also important to realize that a firm has important nonfinancial goals Some examples of these might include the following: ⚫ Expanding sales to existing customers • Increasing customer loyalty to the weaker brands • Developing new products for current and potential customers ⚫ Becoming international by setting up an online ordering service Explain this without using ai
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST3: The Stock Market: Its Function, Performance, And Potential As As Investment Opportunity
Section: Chapter Questions
Problem 1CQ
Related questions
Question
![File Edit Format View Help
When someone opens a business, it is because they want to fulfill important personal financial goals. In
publicly traded companies, managers and employees work on behalf of the shareholders, who own the
business through their ownership of company stock. These managers and employees have an ongoing
obligation to pursue projects, policies, and corporate investments that will increase or promote stockholder
value over the long term. Although many companies focus on financially related goals, such as growth,
earnings per share, and market share, the main financial goal is to create value for investors.
Keep in mind that a company's stockholders are not just an abstract group. Like the sole business owner, they
are individuals who have chosen to invest their hard-earned cash in a company. They are looking for a return
on their investment in order to meet their own personal long-term financial goals, which might be saving for
retirement, a new home, or college education for their children.
In addition to increasing value, it is also important to realize that a firm has important nonfinancial goals
Some examples of these might include the following:
⚫ Expanding sales to existing customers
• Increasing customer loyalty to the weaker brands
• Developing new products for current and potential customers
⚫ Becoming international by setting up an online ordering service
Explain this without using ai](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F833227fa-6456-4698-8430-712200a97c6f%2Ffe5f9699-3e52-40d0-9fae-87b24c4c7c62%2Flp2xxrl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:File Edit Format View Help
When someone opens a business, it is because they want to fulfill important personal financial goals. In
publicly traded companies, managers and employees work on behalf of the shareholders, who own the
business through their ownership of company stock. These managers and employees have an ongoing
obligation to pursue projects, policies, and corporate investments that will increase or promote stockholder
value over the long term. Although many companies focus on financially related goals, such as growth,
earnings per share, and market share, the main financial goal is to create value for investors.
Keep in mind that a company's stockholders are not just an abstract group. Like the sole business owner, they
are individuals who have chosen to invest their hard-earned cash in a company. They are looking for a return
on their investment in order to meet their own personal long-term financial goals, which might be saving for
retirement, a new home, or college education for their children.
In addition to increasing value, it is also important to realize that a firm has important nonfinancial goals
Some examples of these might include the following:
⚫ Expanding sales to existing customers
• Increasing customer loyalty to the weaker brands
• Developing new products for current and potential customers
⚫ Becoming international by setting up an online ordering service
Explain this without using ai
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Macroeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506756/9781305506756_smallCoverImage.gif)
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Microeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506893/9781305506893_smallCoverImage.gif)
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Macroeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506756/9781305506756_smallCoverImage.gif)
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Microeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506893/9781305506893_smallCoverImage.gif)
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
![Microeconomics: Principles & Policy](https://www.bartleby.com/isbn_cover_images/9781337794992/9781337794992_smallCoverImage.jpg)
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning