Financial Managers Should Strive to Maximize the Current Value Per

question 19

Multiple Choice

Financial managers should strive to maximize the current value per share of the existing stock because:

• A) doing so guarantees the company will grow in size at the maximum possible rate.
• B) doing so increases the salaries of all the employees.
• C) the current stockholders are the owners of the corporation.
• D) doing so means the firm is growing in size faster than its competitors.
• E) the managers often receive shares of stock as part of their compensation.

Understand the implications of social dilemmas and their impact on the commons.

Understand the concept and implications of the minimal group paradigm in intergroup behavior.

Recognize social identity as an essential aspect of self derived from group memberships.

Identify ethnocentrism and its causes according to Sherif.