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

Question

Quizplus · Accepted Answer

Maximizing the market value of the existing shareholders' common stock is the best long-term interest because it takes into account the profitability of the company as well as the company's growth potential, which in turn leads to an increase in the stock price and returns for the shareholders. Profit maximization and maximizing sales revenue may lead to short-term gains, but may not necessarily be sustainable or beneficial in the long-run. Risk minimization is also important but may not have a direct impact on the company's stock price or long-term value for shareholders.

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