Which of the Following Is the BEST Description of the Goal

question 93

Multiple Choice

Which of the following is the BEST description of the goal of the financial manager in a corporation where shares are publicly traded?

• A) Maximize sales.
• B) Maximize profits.
• C) Avoid financial distress.
• D) Maintain steady earnings growth.
• E) Maximize the current value per share of the existing stock.

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Definitions:

Adjustments

Modifications made to financial statements to correct errors, account for omitted transactions, or bring the statements in line with Generally Accepted Accounting Principles (GAAP).

Long-term Investments

Assets held for an extended period with the intention of achieving capital gains, dividends, or interest income.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories for clarity.

Intangible Assets

Assets that cannot be physically touched or held, such as patents, trademarks, and goodwill.