Multiple Choice
Value maximization means
A) that managers make decision so as to increase the long-run market value of the financial claims on the firm.
B) that a firm should make products that have the highest price.
C) that managers make decision so as to increase the short-run market value of the financial claims on the firm.
D) all of these choices.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: When a firm earns economic profit<br>A)accounting profits
Q18: The key to understanding the movement in
Q19: Economic profits and the performance of stock<br>A)are
Q20: Executives should<br>A)spend an additional dollar on an
Q21: Exit from a market will occur if
Q23: Brand names help<br>A)create commodities.<br>B)maintain market power.<br>C)create competition.<br>D)keep
Q24: The abnormal net income model predicts a
Q25: It does not make economic sense to
Q26: Diversification is determined by adding value.
Q27: Fixed costs<br>A)do not vary with output<br>B)vary with