Which One of the Following Actions by a fiNancial Manager

question 67

Multiple Choice

Which one of the following actions by a financial manager is most aligned with the goal of financial management?

• A) Increasing the size of a firm by acquiring a non-profitable competitor.
• B) Increasing the sales of the firm by expanding the company's sales force.
• C) Issuing additional shares of stock to repay all of the firm's long-term debt.
• D) Improving the efficiency of the company such that the value of the stock increases.
• E) Increasing the bonuses paid to the top executives as the size of the firm increases.

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Definitions:

Domestic Assets

Assets located within a country's borders, including both tangible and intangible assets owned by residents or entities, and contributing to the national economic value.

Trade Surplus

A situation where a country's exports exceed its imports over a given period, indicating a net inflow of domestic currency from foreign markets.

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.

Automobile Factory

A manufacturing facility dedicated to producing automobiles, encompassing assembly lines and machinery specific to vehicle production.