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

question 20

Multiple Choice

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

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

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Definitions:

Information And Communication

The processes and systems used to create, capture, distribute, and use information, enabling effective exchange and understanding among individuals or organizations.

Reasonable Assurance

A level of confidence or certainty in the effectiveness of an organization's controls, processes, or systems, without guaranteeing absolute assurance.

Vulnerabilities

Weaknesses in a system or security setup that can be exploited by threats.

Customer's Note

It is a formal promissory note or debt instrument where the customer promises to pay a specific sum of money to the issuer, often used in business as a form of short-term financing.