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

question 17

Multiple Choice

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

• A) maximize the stock price per share over the long run, which is the stock's intrinsic value.
• B) maximize the firm's expected eps.
• C) minimize the chances of losses.
• D) maximize the firm's expected total income.
• E) maximize the stock price on a specific target date.

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Definitions:

Security Needs

Part of Maslow's hierarchy, referring to the need for safety and security, including financial stability, health and well-being, and safety against accidents or harm.

Physiological Needs

The basic physical requirements for human survival, such as food, water, shelter, and sleep, which must be met before higher-level needs can be addressed.

Psychological Needs

Basic human motivators related to mental health and well-being, such as belongingness, esteem, and self-actualization.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, focusing on the desire for respect, self-esteem, and recognition from others.