The objective of increasing firm's value.

Full Answer Section

• o create a sustainable business: Businesses that manage their resources effectively are more likely to be sustainable in the long term. This is because they are better able to weather economic downturns and other challenges. They are also more likely to be able to invest in innovation and growth, which can help them to maintain their competitive advantage.

In addition to these reasons, there are a number of other benefits to managing resources effectively. For example, it can help to improve employee morale, reduce costs, and improve decision-making. Ultimately, the goal of managing resources is to ensure that the company is using its resources in the most efficient and effective way possible. This can help to increase shareholder value, improve the company's competitive position, and create a sustainable business. Here are some specific examples of how managers can manage resources to increase firm value:

• Investing in research and development: This can help businesses to develop new products and services that can attract new customers and increase sales.
• Acquiring other businesses: This can help businesses to expand their reach and increase their market share.
• Reducing costs: This can help businesses to improve their profitability and increase their value.
• Managing risk: This can help businesses to avoid financial losses and protect their assets.

By taking these and other steps, managers can help to increase the value of their firms and create a more successful future for their businesses.

Sample Answer here are some reasons why it is necessary and important for managers to manage their firm's resources with the objective of increasing firm's value:

• To increase shareholder value: The primary goal of most businesses is to increase shareholder value. This means that managers should make decisions that will increase the value of the company's stock. Managing resources effectively can help to increase shareholder value by improving the company's profitability, reducing its risk, or increasing its growth potential.
• To stay competitive: In today's competitive marketplace, businesses need to be able to adapt to change quickly and efficiently. Managing resources effectively can help businesses to stay competitive by ensuring that they have the resources they need to meet changing customer demands and market conditions.