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4 August, 03:53

The commonly accepted goal of an MNC is to:

- minimize risk.

- maximize short-term earnings AND minimize risk.

- maximize international sales.

- maximize shareholder wealth.

- maximize short-term earnings.

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  1. 4 August, 04:17
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    The correct answer is maximize shareholder wealth.

    Explanation:

    The concept of "shareholder wealth", to put it simply, is really capital gains and dividends. Regardless of which model the company uses - and many companies do not pay dividends - the wealth of the shareholders is the normal operation of the company and, above all, the main expectation of the shareholders. There are other corporate objectives, such as maximizing sales, market share or debt reduction. These should not immediately lead to the maximization of wealth. The idea of shareholder wealth is closely linked to the idea of expansion and the continuous profits of companies.
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