The Primary Goal of Any Company Should Be to Maximize

question 57

True/False

The primary goal of any company should be to maximize current period profit.

---

Definitions:

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.

Repurchase of Stock

This refers to a scenario where a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Market Price

The ongoing rate at which an asset or service is offered for sale or buying.