The maximization of shareholders wealth is measured by increases in:
A)profits.
B)earnings.
C)stock price.
D)sales.

Question

Quizplus · Accepted Answer

Maximizing shareholders wealth is measured by increases in the stock price because it reflects the company's ability to generate future profits and cash flows, which are the ultimate drivers of shareholder value. While profits and earnings are important metrics, they do not necessarily translate into increases in the stock price, which is the key driver of shareholder wealth. Sales are also important, but they do not capture the profitability or efficiency of the company.

The Maximization of Shareholders Wealth Is Measured by Increases In