The Goal of Management in Finance Is to

question 123

Multiple Choice

The goal of management in finance is to

• A)​maximize profits in the short-run.
• B)​maximize shareholder wealth.
• C)​minimize short-run costs.
• D)​All of the above

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Definitions:

Available-for-sale Debt Investment

A type of financial asset representing debt instruments that a company plans to sell before their maturity date but are not actively traded for profit in the short term.

Unrealized Gain-Equity

An increase in the value of an investment or asset that has not been sold, as recorded in the equity section of the balance sheet.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Security

A financial instrument representing ownership in a company, such as stocks, entitling holders to a share of the company's profits.