Value Maximization Is the Main Objective of Top Management

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The Answer is The three most important alternatives are: satisficing behavior, sales maximization, and pursuing the firm's social responsibilities to all stakeholders. Satisficing behavior posits that firms will sometimes strive for second-best, or an acceptable level of performance as against the highest level of maximization. Sales targets may closely be linked to managers' compensation and so firms may also strive to maximize sales subject to a certain level of profit. Firms that pursue social responsibility as their objective would aim to satisfy not only customers and investors but also society, the environment, and other stakeholders. All these objectives may be pursued at the expense of profits.

Value Maximization Is the Main Objective of Top Management

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Value Maximization Is the Main Objective of Top Management

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