asked 128k views
2 votes
What is the primary function or goal of a company?

a) Maximizing employee satisfaction
b) Maximizing shareholder value or profit
c) Providing charitable contributions
d) Promoting social justice

asked
User Nusatad
by
8.5k points

1 Answer

0 votes

Final answer:

The primary goal of a company is to maximize shareholder value or profit, with other objectives like employee satisfaction and social justice being secondary to this main goal.

Step-by-step explanation:

The primary function or goal of a company is b) Maximizing shareholder value or profit. This involves strategies and practices that aim to increase the overall wealth of the company's shareholders by growing the company and generating profits. While employee satisfaction, charitable contributions, and promoting social justice may also be components of a company's operations or mission, they are generally not considered the primary goal. The focus on profit maximization is supported by well-established economic theories, such as those articulated by economist Milton Friedman, who famously argued that the social responsibility of business is primarily to increase its profits.

answered
User IsuruAb
by
7.7k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories