What Should Be the Primary Operating Goal of a Publicly

question 43

Multiple Choice

What should be the primary operating goal of a publicly owned firm interested in serving its shareholders?

• 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) maximize the firm's expected total income
• D) maximize the stock price on a specific target date

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Definitions:

Minor Defects

Small or negligible flaws in a product or system that do not significantly impair its usability or functionality.

Major Defects

Significant flaws or imperfections in a product, property, or system that can affect its performance, value, or usability.

AASB 137

The Australian Accounting Standards Board's standard on Provisions, Contingent Liabilities, and Contingent Assets, which outlines how to account for and disclose these items in financial statements.