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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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