Present and prospective shareholders are mainly concerned with a firm's ________.
A) risk and return
B) profitability
C) leverage
D) liquidity

Question

Quizplus · Accepted Answer

Shareholders are most concerned with the risk and return of a firm since they want to make sure that their investment is profitable, but also that it is not too risky. Profitability, leverage, and liquidity are also important factors, but they are more relevant to the firm's management and lenders.

Present and Prospective Shareholders Are Mainly Concerned with a Firm's