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When someone opens a business, it is because they want to fulfill important personal financial goals. In

publicly traded companies, managers and employees work on behalf of the shareholders, who own the

business through their ownership of company stock. These managers and employees have an ongoing

obligation to pursue projects, policies, and corporate investments that will increase or promote stockholder

value over the long term. Although many companies focus on financially related goals, such as growth,

earnings per share, and market share, the main financial goal is to create value for investors.

Keep in mind that a company's stockholders are not just an abstract group. Like the sole business owner, they

are individuals who have chosen to invest their hard$-$earned cash in a company. They are looking for a return

on their investment in order to meet their own personal long$-$term financial goals, which might be saving for

retirement, a new home, or college education for their children.

In addition to increasing value, it is also important to realize that a firm has important nonfinancial goals

Some examples of these might include the following:

Expanding sales to existing customers

Increasing customer loyalty to the weaker brands

Developing new products for current and potential customers

Becoming international by setting up an online ordering service

Explain this without using ail