Question

2.The purpose of a corporation is to generate wealth for its shareholders. In no more than...

2.The purpose of a corporation is to generate wealth for its shareholders. In no more than 5 sentences, agree or disagree with this statement and argue your case. (There are no wrong answers, just how well you argue). (4 points)

Circle one:      Agree              Disagree

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Answer #1

Agree with the wealth maximization of shareholders since the revenues generated by the cash flows of a company is capable enough to provide dividends to the shareholders. Also appreciation of the shareholder's value will increase the equity value of the company. The more the stake increases by the stakeholders the more the capital get's funded which can financially support future corporate projects or acquisitions.

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