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:

Person-Organization Fit

The degree to which an individual's values, personality, and work style align with the culture and requirements of an organization.

Nonprofit Organization

An organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, without seeking to generate a profit for its owners or organizers.

Underdeveloped Countries

Underdeveloped countries are nations characterized by a low standard of living, economic instability, and poor infrastructure, often resulting from a lack of industrialization.

Cross-Cultural Leader

A leader adept at navigating and bridging differences among various cultural backgrounds within a team or organization to foster understanding and cooperation.