Questions We Can Help You To Answer

According to the videos and readings for this week, you learned that the goal of financial management is to maximize shareholder wealth. Write a short paper discussing the relationship between this goal and the goal of maximizing the firm’s profits. Specifically, what are the similarities and differences between these goals? Provide an example of how maximizing profits might not lead to shareholder wealth maximization.

In addition, find at least one scholarly article that criticizes the goal of shareholder wealth maximization. Briefly summarize the criticism(s) offered and discuss whether you believe the criticism is valid. In particular, does the article make you question the shareholder wealth maximization goal? If so, why and if not, what flaws do you see in the criticism?

Length: 150-250 words not including cover and reference pages

Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.

Video references:

Financial Management (1999). 
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Fundamental Concepts in Financial Management (1995).
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Money Never Sleeps: Global Financial Markets (2011). 
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