Potential goals is extensive：

• maximizing revenues, profits, earnings per share, returns, market share, or social good 

• minimizing costs 

• maintaining steady earnings growth

• avoiding financial distress and bankruptcy and surviving

2.3.1 Stakeholder Theory 

• Stakeholder theory asserts that managers should make decisions that take into account the interests of all of a firm's stakeholders. 

• Such stakeholders include not only financial claimholders but also employees, managers, customers, suppliers, local communities, and the government. 

• The major problem with stakeholder theory is that it involves multiple objectives.

2.3.2  Value or Wealth Maximization

• To maximize long-term firm value or wealth——market value of the stockholders or that of the firm.

• Maximization of shareholder wealth focuses only on stockholders whereas maximization of firm value encompasses all financial claimholders including common stockholders, debt holders, and preferred stockholders.

• In practice, this goal means that the financial manager can best serve business owners by identifying goods and services that add value to the firm because the marketplace desires and values the firm's offerings.

Three assumptions

• Do not attempt to expropriate the wealth from lenders to benefit shareholders.

• Do not take actions to deceive financial market to boost the share prices

• Act in a socially responsible manner