Which of the Following Best Describes the Goal of the Firm

question 42

Multiple Choice

Which of the following best describes the goal of the firm?

• A) The maximization of the total market value of the firm's common stock
• B) Profit maximization
• C) Risk minimization
• D) None of the above

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Definitions:

Ethical Behavior

Behavior demonstrating a willingness to treat others fairly and that shows one to be honest and trustworthy and that exhibits loyalty to company, associates, and the work for which one is responsible.

Treating Others Fairly

The act of interacting and making decisions in a way that is just, unbiased, and equitable towards all individuals.

Ethical Dilemma

A situation in which a person must choose between conflicting moral principles, making a decision that could have ethical ramifications.

Undesirable Elements

Refers to aspects or components within a context, environment, or system that are considered harmful, unwanted, or negative.