Chapter 1, Problem 10CTCR

Summary Introduction

To critically think about: Whether the goal of maximizing the firm’s stock value conflict with other goals, like avoiding illegal or unethical behavior.

Introduction:

The ethics in business mainly examines the ethical or moral issue that arises in a business. It is the study of proper practices and policies of the corporate governance.

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without considering the future consequences.

Summary Introduction

To critically think about: Whether the environment, general good for the society, employee and customer safety fits in this framework or they are ignored and illustrated with a specific scenario.

Introduction:

The ethics in business mainly examines the ethical or moral issue that arises in a business. It is the study of proper practices and policies of the corporate governance.

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without considering the future consequences.