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

question 37

Multiple Choice

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

• A)minimize the debt used by a firm
• B)maximize expected earnings per share (EPS)
• C)minimize the chances of losses
• D)maximize the stock price per share
• E)maximize expected net income

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Definitions:

Drive-Reduction Theory

A theory that explains motivation as being based on the goal of eliminating uncomfortable states.

Clark Hull

An American psychologist known for his drive reduction theory, which suggests that human motivation arises from the desire to reduce drives like hunger or thirst.

State Of Arousal

A condition of the nervous system characterized by heightened sensory awareness and readiness for action.

Primary Drives

Basic, innate motivations that are essential for survival, such as hunger, thirst, and the need for sleep.