Goals of the Firm-Maximizing their personal incomes

When top executives of the corporation pursue policies which maximize their personal incomes and advantages, the most likely outcome is that: (1) The Corporation will attempt to maximize the net revenue. (2) Stockholders in the corporation will experience the highest economic profits. (3) Principal-agent troubles yield failures to maximize the firm’s value for share-holders. (4) The market value of shares of stock-holders will be maximized.

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