Which of the Following Statements Best Describes Corporate Goals

question 59

Multiple Choice

Which of the following statements best describes corporate goals?

• A)The proper goal of the financial manager should be to attempt to maximize the firm's expected cash flows, because this will add the most to the wealth of the individual shareholders.
• B)The financial manager should seek that combination of assets, liabilities, and capital that will generate the largest expected projected after-tax income over the relevant time horizon, generally the coming year.
• C)The riskiness inherent in a firm's earnings per share (EPS) depends on the characteristics of the projects the firm selects, and thus on the firm's assets. However, EPS is not affected by the manner in which those assets are financed.
• D)Potential agency problems can arise between shareholders and managers, because managers hired as agents to act on behalf of the owners may instead make decisions favourable to themselves rather than the shareholders.

Understand the concept and implications of privatization within government services.

Identify the importance and functioning of merit-based employment systems in preventing patronage and ensuring efficient governance.

Recognize the impact and purpose of legislative acts aimed at reforming the civil service and protecting employees.

Understand the historical context and evolution of federal employment practices, including the shift from the spoils system to merit-based systems.

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Definitions:

Genetic Similarity

The degree to which the genetic makeup of individuals or species resembles each other.

Heritability

The proportion of variation among individuals that we can attribute to genes. The heritability of a trait may vary, depending on the population and environment studied.

Intelligence

The ability to learn from experience, solve problems, and use knowledge to adapt to new situations.

Rod-Shaped Structures

In biology, refers to cylindrical structures found in cells or organisms, such as the rod cells in the retina that are responsible for vision in low light.