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If a Firm's Managers Want to Maximize Stock Price It

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If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.


Definitions:

Evolutionary Theory

A scientific theory that proposes organisms change over time through processes such as natural selection and genetic mutation, leading to the diversity of life seen today.

Procreate

The act of reproducing or generating offspring, a basic biological process across various species, including humans.

Intoxicated

A state of being impaired by alcohol or drugs.

Evaluation Apprehension

The fear of being judged or evaluated by others, which can influence individuals' performance and behavior in social situations.

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