A Financial Manager of a Corporation Is Considering Different Operating

question 207

Multiple Choice

A financial manager of a corporation is considering different operating strategies for the coming year. From a financial management standpoint, which of the following would be her optimal strategy?

• A) Undertake the plan that would reduce the overall riskiness of the firm.
• B) Undertake the plan that would maximize the current stock price.
• C) Undertake the plan that would result in the largest profits for the year.
• D) Undertake the plan that would maximize her personal wealth.
• E) Undertake the plan that would lead to the most stable stock price for the year.

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Definitions:

Sexual Orientation

A person's emotional, romantic, or sexual attraction to individuals of a specific gender.

Civil Rights Act of 1964

Landmark U.S. legislation that outlawed discrimination based on race, color, religion, sex, or national origin.

Discrimination

Unjust or prejudicial treatment of individuals, especially on the grounds of race, age, sex, or disability.

White Primary

A practice that arose in the American South whereby only white citizens were allowed to vote in primary elections, effectively disenfranchising African Americans.