The Authors Note That the Goal of Maximizing the Market

question 53

Multiple Choice

The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because:

• A) the market value of the firm is based on long-run profits.
• B) managers will not focus on increasing short-run profits at the expense of long-run profits.
• C) this would more closely align the interests of owners and managers.
• D) all of the above