Which of the Following Should Be Done by a Manager

question 10

Multiple Choice

Which of the following should be done by a manager wishing to raise his stock's price?
I. Focus on maximizing the present value (PV) of the free cash flow.
II. Focus on accounting earnings.
III. Focus on financial policy.

• A) I only
• B) II only
• C) I and II
• D) II and II

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Definitions:

Responsible Party

The individual or entity legally obligated or liable for something, particularly in the context of a legal contract or wrongful act.

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care, often defined by the legal standard to avoid or minimize risk.

Director

An individual elected by shareholders or appointed to govern and oversee the management of an organization or corporation's affairs.

Corporation

A legal entity that is separate from its owners, with its own rights, privileges, and liabilities distinct from those of its members.