If Managers Are Making Decisions to Maximize Shareholder Wealth, Then

question 23

Multiple Choice

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should

• A) positively affect profits.
• B) increase the market value of the firm's common stock.
• C) either increase or have no effect on the value of the firm's common stock.
• D) accomplish all of the above.

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Definitions:

Supplies

Materials and items used in the daily operations of a business that often have a short life span.

Salaries Payable

A liability account that represents the amount owed to employees for work done but not yet paid.

Fiscal Period

A specific time period used for accounting purposes and preparing financial statements, usually twelve months.

Accumulated Depreciation

The cumulative amount of depreciation cost recorded for an asset from the time it was first utilized.