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

question 29

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:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, workplace safety, and other employment terms.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Hybrid Social Venture

An enterprise that combines aspects of non-profit and for-profit models aiming to address social issues while generating revenue.

Buy One Give One

A business model where a company donates a product for each product purchased by a consumer.