Question 4All of the following are theoretically incorrect financial goals or objectives of the firm exceptMaximizing the size of the firmO Maximizing the value or stockholders' wealth of the firmO Maximizing the satisfaction of all parties to the firm to include customers, suppliers, owners, employees, and managementNone of the answers provided are correct.

The financial goal of a firm refers to the ultimate objective or target that the company aims to…

Answered: All of the following are theoretically…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Which one of the following characteristics of the positive accounting theory brings forward the problem of Opportunistic Behavior? Oa. It wants to minimize costs associated with contracts of the firm. O b. It recognizes the flexibility in choosing accounting policies by the firm. O c. It recognizes the existence of economic consequences in the firm. O d. It aims to maximize the prospects for survival of the firm.
Which of the following is NOT a way of stating the overriding goal of financial management? Select one: a. Maximising the value of the firm. b. Maximising the wealth of shareholders. c. Maximing the firm's share price. d. Maximising revenue.
Which two of the following statements about the company's goals and the purpose of financial management are false? Choose two (2) of the answer options below, which correctly answer the question asked. 1. Strategies are translated into business plans, which more clearly describe how different goals and sub-goals are to be achieved. 2. The stakeholder model is based on an approach where the company is open to its surroundings. 3. The goal formulation of the satisfaction model is based on taking into account the specific company's opportunities for a positive result. 4. The profit maximization model is based on decision-makers being rational and having full access to information. 5. The business manager model is based on the fact that ownership and operation of a business are not separate. 6. The stakeholder model's goal formulation is based on being able to meet the requirements and expectations of all different stakeholders at the same time.
Which of the following statements is INCORRECT? OA. The primary financial goal of the business firm is to maximize the wealth of the firm's owners. B. A firm's stock price depends on the magnitude of cash flows the firm will generate, the timing of cash flows, and the risk associated with these cash flo OC. Maximization of owner value and societal benefits are always consistent. OD. None of the above
Which of the following statements about fundamental analysis is least likely accurate?a. It combines all factors of business such as models, competitive advantage, management, and corporategovernanceb. It analyzes the industry and the macroeconomic and its effect to the securityc. It includes measurement of risk such as political, legal, social, and environmental.d. It is subjective and it assumes that intrinsic value cannot be measured but rather it is opinionatede. All of the abovef. None of the above
Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O b. maximize dividend payments Oc minimize expenses O d. satisfaction of suppliers
Which of the following is the overarching principle that a financial manage should follow when making decisions? O Decisions should generate the greatest benefits for the firm. O Decisions should be on behalf of the firm's owners that give the greatest benefit those owners, the firm's employees and the firm's other stakeholders. O Decisions should provid benefit to the firm without incurring costs. O Decisions should increase the value of the firm to its investors.
Which of the following is NOT a tool to measure firm performance? O Return on equity. O Economic value. Market capitalization. Firm branding.
What is NOT a question that needs to be answered when completing financial due diligence? A. Is the company worth what it seems to be? B. Is the deal worth doing? C. All of these choices are questions that need to be answered l. D. Are these any major risks that could be a problem?
Which of the following statements is true? a. Determining how day-to-day financial matters should be managed is not a function of financial managers. B. The goal of the firm is to maximize market share. C. Working capital management refers to identifying productive long-term assets the firm could acquire to maximize net benefits. D. Capital budgeting refers to identifying productive long-term assets the firm could acquire to maximize net benefits.
TOPIC: Introduction to Financial Management 1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on. 2. Which of the following statement/s depicts agency relationships and conflicts? I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…
A financial manager's goal of maximizing current or short-term earnings may not be appropriate because: Multiple Choice it considers the timing of the benefits. share ownership is widely dispersed. increased earnings may be accompanied by acceptably higher levels of risk. earnings are subjective, they can be defined in various ways such as accounting or economic earnings

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