The primary financial goal of a corporation is to maximize:
A)shareholders wealth.
B)earnings per share.
C)stock price.
D)Both a & c
E)All of the above

Question

Quizplus · Accepted Answer

The primary financial goal of a corporation is to maximize shareholders wealth, which can be achieved by increasing the value of the stock price. Therefore, both options "a" and "c" are correct. "B" (earnings per share) is not the primary financial goal, but rather a tool used to achieve the primary goal. Option "E" is not correct as "B" is not a primary financial goal but rather a tool used to achieve it.

The Primary Financial Goal of a Corporation Is to Maximize