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

Question

Quizplus · Accepted Answer

Maximising the stock price per share is the most appropriate goal for a publicly-owned firm interested in serving its shareholders, as it reflects the value of the firm in the market and increases the wealth of shareholders. Minimising debt, chances of losses, and maximising net income are important factors, but they are not the primary goal of a publicly-owned firm. Maximising expected EPS may not always result in maximising the stock price per share, as EPS can be manipulated through accounting practices.

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