Managers of firms should only take actions that

Question

Quizplus · Accepted Answer

Managers of firms should only take actions that increase the value of the firm's future cash flows, as this is the ultimate goal of the firm. However, it is also important to consider the impact of these actions on the firm's share price, as this is often an important metric used by investors to evaluate the firm's performance. Additionally, managers should only take actions that have benefits which are at least as great as the costs of those actions, to ensure that the firm is using its resources efficiently. Therefore, all of the above options are important considerations for managers of firms.

Managers of Firms Should Only Take Actions That