What Should Be the Primary Operating Goal of a Publicly

question 39

Multiple Choice

What should be the primary operating goal of a publicly owned firm interested in serving its shareholders?

• A)maximize the stock price per share, which is the stock's intrinsic value, over the long run
• B)maximize the firm's expected EPS
• C)maximize the firm's expected total income
• D)maximize the stock price on a specific target date

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Definitions:

Expropriation

The seizure by a government of privately owned business or personal property for a proper public purpose and with just compensation.

National Interests

The strategic, economic, and political goals or priorities of a nation considered important for its welfare and security.

International Contract

An agreement between parties located in different countries, often involving the exchange of goods or services across borders.

International Law

A body of rules and principles that governs the relations and interactions between nations.