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

question 14

Multiple Choice

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

• A) Minimise the debt used by a firm.
• B) Maximise expected EPS.
• C) Minimise the chances of losses.
• D) Maximise the stock price per share.
• E) Maximise expected net income.

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Definitions:

Market Shift

A change in the supply or demand conditions in a market, leading to a new equilibrium of prices and quantities.

Gasoline

A fluid energy source obtained from crude oil, predominantly utilized to operate engines based on internal combustion.

Supply (S)

The total amount of a specific good or service that is available to consumers at various prices over a certain period.

Demand (D)

In economic terms, the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.