Which of the following goals is in the best long-term interest of shareholders?
A)Profit maximisation
B)Risk minimisation
C)Maximising of the market value of the existing shareholders' common stock
D)Maximising sales revenues

Question

Quizplus · Accepted Answer

Maximising the market value of the existing shareholders' common stock is in the best long-term interest of the shareholders as it reflects the company's ability to generate sustainable profits and grow over time, which is likely to result in higher stock prices and returns for shareholders. Profit maximisation and maximising sales revenues may be short-term goals that could come at the expense of long-term growth and shareholder value. Risk minimisation is important but should be balanced with strategic decision-making to drive growth and profitability.

Which of the Following Goals Is in the Best Long-Term