Because of the need to satisfy both the demands of stockholders and regulatory agencies, public companies need to balance the desire to minimize taxes with the goal of achieving quarterly earnings levels consistent with investor expectations. Failure to do so frequently results in an immediate loss in the firm's market value.

Question

Quizplus · Accepted Answer

Public companies are under pressure to balance multiple demands, including the need to minimize taxes, meet quarterly earnings expectations, and comply with regulatory agencies. Failure to achieve these goals can result in a loss of market value.

Because of the Need to Satisfy Both the Demands of Stockholders