Die ondernemingsdoelwit end die investeringsbesluit

Abstract

Many divergent notions exist in theory and in practice about the formulation of the primary objectives of the enterprise. In theory it often is concerned with maximisation of wealth of either the common shareholder or the enterprise. In practice, on the other hand, the primary objective is often to make a satisfactory profit per share. How can these obvious differences be reconciled and what is the relationship between primary financial selection criteria in practice and their primary objective?