Maximising the value of the firm can also be described as:
A)maximising the value of the company's ordinary shares.
B)maximising the accounting profit of the firm.
C)minimising the interest rate charged by creditors of the firm.
D)maximising sales revenue or turnover of the firm.

Question

Quizplus · Accepted Answer

Maximising the value of the firm involves increasing the value of the company's assets and future earnings potential, which ultimately results in an increase in the value of the firm's ordinary shares. Options B, C, and D do not directly relate to maximising the value of the firm.

Maximising the Value of the Firm Can Also Be Described