Which One of the Following Actions by a Financial Manager

question 7

Multiple Choice

Which one of the following actions by a financial manager least meets the goal of financial management?

• A)Increasing current costs in order to increase the market value of the stockholders' equity
• B)Agreeing to expand the company at the expense of stockholders' value
• C)Refusing to lower selling prices if doing so will reduce the net profits
• D)Agreeing to pay bonuses based on the market value of the company stock
• E)Refusing to borrow money when doing so will create losses for the firm

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Definitions:

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose their electrons.

Potassium Ions

Charged atoms of potassium, vital for various physiological processes including nerve signal transmission, muscle contraction, and fluid balance within the body.

Guard Cells

Specialized cells in the epidermis of leaves, stems, and other organs that regulate gas exchange and water loss by controlling the opening and closing of stomata.

Stomata

Tiny openings or pores found in the epidermis of leaves and stems that allow for gas exchange between the plant and its environment.