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Putting the interests of which party first should be the primary goal of a corporation?

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User Sency
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1 Answer

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Final answer:

The primary goal of a corporation can be either shareholder primacy or stakeholder theory.

Step-by-step explanation:

The primary goal of a corporation can vary depending on the perspective taken. Some argue for the view of shareholder primacy, in which a corporation's managers should prioritize the interests of shareholders. This view asserts that executives are tasked with running the firm in the shareholders' best interests to increase their wealth. On the other hand, stakeholder theory argues that managers should seek to balance the interests of all stakeholders, including shareholders, employees, customers, and the community.

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User TKumar
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