The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Question

Quizplus · Accepted Answer

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to maximize the stock price per share over the long run, which is the stock's intrinsic value. This ensures that the shareholders receive a fair return on their investment and the firm can attract new investors. Maximizing EPS, minimizing losses, or maximizing expected total income are important considerations, but they should not take precedence over maximizing the stock price per share. Maximizing the stock price on a specific target date may be a short-term goal, but it should not be the primary operating goal of the firm.

The Primary Operating Goal of a Publicly-Owned Firm Interested in Serving