Which of the following goals is in the best long-term interest of stockholders?
A)profit maximisation
B)risk minimisation
C)maximising the market value of shareholders' stock
D)maximising sales revenues

Question

Quizplus · Accepted Answer

Maximising the market value of shareholders' stock is in the best long-term interest of stockholders as it takes into account both profitability and risk. It ensures that the company is generating sustainable profits while also minimizing risk to ensure that the stock price consistently increases over time. Profit maximisation and maximising sales revenues may lead to short-term gains but may not be feasible in the long run, while risk minimisation may limit potential growth opportunities. Thus, maximising the market value of shareholders' stock is the best choice for long-term interests.

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