Which of the Following Statements Best Describes Corporate Goals

question 59

Multiple Choice

Which of the following statements best describes corporate goals?

• A)The proper goal of the financial manager should be to attempt to maximize the firm's expected cash flows, because this will add the most to the wealth of the individual shareholders.
• B)The financial manager should seek that combination of assets, liabilities, and capital that will generate the largest expected projected after-tax income over the relevant time horizon, generally the coming year.
• C)The riskiness inherent in a firm's earnings per share (EPS) depends on the characteristics of the projects the firm selects, and thus on the firm's assets. However, EPS is not affected by the manner in which those assets are financed.
• D)Potential agency problems can arise between shareholders and managers, because managers hired as agents to act on behalf of the owners may instead make decisions favourable to themselves rather than the shareholders.

Realize the influence of stereotypes on societal perceptions and attitudes.

Explore the nature and impact of institutional discrimination.

Recognize the differences between implicit and explicit attitudes and their measurements.

Understand various factors that contribute to test anxiety and identify its behavioral aspects.

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Definitions:

Base Period

A specific time period used as a reference point to measure changes in economic indicators or indexes.

Quantity

The quantity of a tangible or intangible good or service.

Frictional Unemployment

A type of unemployment that occurs when people are temporarily between jobs or are waiting to start new jobs, often seen as a natural part of the labor market.

Labor Force

consists of all the people who are of working age, able and willing to work, and actively seeking employment or are currently employed.