The Primary Operating Goal of a Publicly-Owned Firm Interested in Serving

question 16

Multiple Choice

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

• A) Maximize the stock price per share over the long run, which is the stock's intrinsic value.
• B) Maximize the firm's expected EPS.
• C) Minimize the chances of losses.
• D) Maximize the firm's expected total income.
• E) Maximize the stock price on a specific target date.

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Definitions:

Manic

Relating to or affected by mania, a mood state characterized by excessive energy, excitement, euphoria, and sometimes delusions.

Normal Depression

Refers to feelings of sadness or low mood that are common and not indicative of a clinical disorder.

Survival

The act or process of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances.

Reproduction

The biological process by which new individual organisms are produced, ensuring the continuation of a species.