Which the Following Would Not Be Considered by a Firm

question 17

Multiple Choice

Which the following would not be considered by a firm that has a goal of maximizing stock price? If a firm establishes maximizing profits as the most important goal of the firm, which of the following would not be given proper consideration?

• A) Sales revenues
• B) Profits
• C) Risk of bankruptcy
• D) Cost of goods sold

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Definitions:

Feedback

Information provided regarding aspects of one’s performance or understanding, used as a basis for improvement.

Receives

To get or be given something.

Stakeholders

Individuals or groups that have an interest, investment, or impact on a project, organization, or outcome.

Captive Audience

A group of people who are compelled to listen or watch something, often because they are in a situation where they cannot avoid it.