a. Management ownership is not a likely goal of the firm.
While management ownership can exist, it is not typically a primary goal of the firm. The primary goals of most firms are to maximize shareholder wealth, which aligns the interests of management with those of the shareholders, who are the owners of the company. Profit maximization and growth are also common goals that contribute to shareholder wealth maximization. However, management ownership as a primary goal could lead to conflicts of interest between management and other stakeholders, such as shareholders, employees, and customers. Therefore, while management may have ownership stakes, the primary goal remains maximizing shareholders’ wealth.
