Question 1.RQ.3: Some managers, if asked what the main objective of their bus...

Financial Management for Decision Makers

Some managers, if asked what the main objective of their business is, may simply state: ‘To survive!’ What do you think of this as a primary objective?

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Survival may be a basic objective for a business. However, shareholders will expect to receive returns from their investment and will not be interested in businesses that simply see this as their primary objective. Nevertheless, there may be times when survival has to become the main objective.
In a highly competitive economy, a business has to pursue shareholder wealth maximisation in order to survive. Under such circumstances, shareholder wealth maximisation and survival become inextricably linked.

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