Which of the Following Goals Is in the Best Long-Term

question 63

Multiple Choice

Which of the following goals is in the best long-term interest of stockholders?

• A) Profit maximization
• B) Risk minimization
• C) Maximizing of the market value of the existing shareholders' common stock
• D) Maximizing sales revenues

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Definitions:

Investment Strategy

A set plan of action designed to achieve long-term financial goals, involving the selection of various financial assets for investment.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones to avoid loss.

Investors Prefer

Refers to investors' tendencies to favour certain assets, securities, or investment strategies based on risk, return, and personal preferences.

Expected Return

The predicted amount of profit or loss an investment generates based on historical performance or analyst forecasts.