The Goal of Managers Is to Manage Resources in Such

question 45

Multiple Choice

The goal of managers is to manage resources in such a way

• A)to make them worth as much as they would be in their next best use.
• B)to make them worth more than they would be in any other use.
• C)to cover the cost of capital.
• D)to cover all opportunity costs.

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Definitions:

Semiannual Interest Payments

Semiannual interest payments refer to the practice of paying interest on a loan or bond twice a year.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, entitling the holder to interest payments and the return of principal at maturity.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not correspond with its actual market price.

Profit Margin

A financial metric expressing the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company's sales.