Businesses seek to prosper and grow as a general rule. For most firms, the “yardstick” used to evaluate business growth, success, and viability is based on both the financial statements and comparisons to like firms. Many businesses use these quantitative measures to set goals for institutional, division and individual goals. This week we will be examining how and why businesses may use these financial metrics to measure their success.
Considering this please address the following prompts in your discussion:
How do these goals promote the maximization of shareholder wealth?
What is a firm’s responsibility to society regarding corporate citizenship, ethics and shareholder wealth?
Support your ideas with examples and/or references.
