Question

We learned that share value maximization is the ultimate goal of a firm in the market economy? How does this seemingly selfish goal benefit the entire society?

Answer 1

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And we know that motive of ultimate goal of any veganisation ay to maximize shareholders wealth, which stater to increase not present value of expected I future cash flows. To achieve the goal of maximizely of wealth, fwem wes the efficient economic escurce of society. By using theie resources, companies produce I a product de service which consument are willing I to buy a pay for it f consumere are satisfied I then the society ú benefitted. However, while selecting project manager choose those project with highest NPV, which giver highest retwen on capital invested the companies pays taxes to govertment on profit earning. The revenue... collected by government through taxel are utis- sed under varusius projects such as development y iberastruelūre, construction of roadly bridged & generating new employment opportunities which benefit whole society Now a day for undere coreposate docial responsibiliter (CSR) in which companies too contribute fie upliftment of society from their profit Many companies are working to upgrade the weaker sections of society, implementing programe for development of ruvial areas, promoting education as well so we can say that with their share velue maximization, firme are also benefitting the entire souely TI