Which one of these represents the best means of increasing current shareholder value?
A)Maximizing the capital rate of the firm
B)Increasing the current value of the overall firm
C)Forsaking all new projects
D)Minimizing the overall size of the firm
E)Decreasing the number of employees

Question

Quizplus · Accepted Answer

Increasing the current value of the overall firm will directly increase the shareholder value since shareholders own a portion of the company. Maximizing the capital rate of the firm may not necessarily increase shareholder value if it comes at the cost of sacrificing long-term growth opportunities. Forsaking all new projects and minimizing the overall size of the firm may actually harm shareholder value by limiting potential revenue streams. Decreasing the number of employees may lead to short-term cost-cutting benefits, but may have long-term negative impacts on the company's ability to compete and grow.

Which One of These Represents the Best Means of Increasing