What Is the Proper Goal for Management of a Firm

question 2

Multiple Choice

What is the proper goal for management of a firm?

• A) Maximize shareholder wealth
• B) Maximize net income or earnings
• C) Maximize sales revenue
• D) Minimize expenses

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Definitions:

Standard Normal Curve

A bell-shaped curve that is symmetric about the mean, showing the distribution of a standard normal variable where the mean is zero and the standard deviation is one.

Z-score

A statistic that measures the distance of a single data point from the mean, expressed in units of standard deviation.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group falls.

Standard Normal Curve

A symmetrical bell-shaped curve representing the distribution of a variable that has been standardized; it has a mean of 0 and a standard deviation of 1.