Shareholders are generally concerned with the following.
Current earnings
Future earnings
Dividend policy
Relative risk of their investments
The objective of wealth maximization is usually expanded into three primary objectives.
To continue in existence: is the ultimate measure of success of a business. In order to survive in the long term a business must be financially successful.
To maintain growth and development: is generally seen as a sign of success, provided it is profitable and usually results in improvements in financial performance.
To make a profit
Growth can be identified from no of ways both financial and non-financial
Financial: Profitability, Revenue, Return of investment, Cash flow
Non – Financial: Market Share, No of employees, No of Products.
Peter drucker has suggested that profit seeking organisations typically have objectives relating to the following
Market standing
Innovation
Productivity
Physical and financial resources
Profitability
Manager performance and development
Worker performance and attitude
Public responsibility