Which of the following goals is in the best long-term interest of stockholders?
A) Profit maximization
B) Risk minimization
C) Maximizing of the market value of the existing shareholders' common stock
D) Maximizing sales revenues

Question

Quizplus · Accepted Answer

Maximizing the market value of the existing shareholders' common stock is in the best long-term interest of stockholders because it takes into account not only short-term profits but also the potential for future growth and success of the company. It also considers the impact of financial decisions on the company's stock price, which ultimately affects the value of the shareholders' investment. Profit maximization and maximizing sales revenues may lead to short-term gains but can be risky and unsustainable in the long run. Risk minimization is important, but it should not be the sole focus of the company's goals.

Which of the Following Goals Is in the Best Long-Term