Which of the following is consistent with maximizing the value of a firm?
A) increasing the amount and complexity of financial data reported by the firm
B) increasing the riskiness of firm
C) spending large amounts of money perquisites for the managers
D) following sound sustainable business practices
E) None of the above

Question

Quizplus · Accepted Answer

Maximizing the value of a firm involves increasing profits, reducing costs, improving efficiency, and making sound sustainable business decisions. Following sound sustainable business practices is consistent with maximizing the value of a firm as it ensures long-term profitability and reduces risks associated with unethical or unsustainable practices. Increasing financial data or complexity may not necessarily contribute to value creation, and increasing riskiness or spending large amounts on manager perquisites could harm the firm's value.

Which of the Following Is Consistent with Maximizing the Value