Which of the following is what managers should be trying to do for the ﬁrm?
A)maximize revenue.
B)minimize expenses.
C)maximize the market value of the existing owners' equity.
D)maximize the current period's net income.
E)None of the above.

Question

Quizplus · Accepted Answer

Maximizing the market value of the existing owners' equity is the ultimate goal of the firm because it takes into account both the current and future value of the company. Maximizing revenue or net income may not necessarily lead to an increase in market value if it comes at the expense of long-term growth or profitability. Minimizing expenses is important, but it is not the ultimate goal of the firm.

Which of the Following Is What Managers Should Be Trying