Stock price maximization requires _____.
A)sale of high-quality goods and services at the highest possible prices
B)efficient, low-cost plants that produce high-quality goods and services
C)the development of products that can be sold at a higher price to consumers
D)investment in high-cost plants to manufacture efficiently
E)investment in one business establishment to cut the operational cost of multiple establishments

Question

Stock price maximization requires _____. 
A)sale of high-quality goods and services at the highest possible prices
B)efficient, low-cost plants that produce high-quality goods and services
C)the development of products that can be sold at a higher price to consumers
D)investment in high-cost plants to manufacture efficiently
E)investment in one business establishment to cut the operational cost of multiple establishments

Quizplus · Accepted Answer

Stock price maximization requires efficient, low-cost plants that produce high-quality goods and services. This is because producing goods and services at a low cost allows the company to maintain a high profit margin, which can lead to an increase in stock price. High-quality goods and services also tend to generate higher revenue and customer loyalty, which can also positively impact stock price. The sale of goods and services at the highest possible prices may not always be ideal, as it can negatively impact customer demand and ultimately result in lower profits. Investing in high-cost plants may increase efficiency but may not necessarily lead to stock price maximization. Similarly, investing in one business establishment may cut operational costs, but it may not necessarily result in a higher stock price. The development of products that can be sold at a higher price may also increase profitability, but it is only one factor in stock price maximization.

Stock Price Maximization Requires _____