The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to
A. Maximize the stock price per share over the long run, which is the stock's intrinsic value.
B. Maximize the firm's expected EPS.
C. Minimize the chances of losses.
D. Maximize the firm's expected total income.
E. Maximize the stock price on a specific target date.
Answer: A
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Which of the following is a step that organizations should undertake while recruiting employees?
a. Conduct a covert investigation on the background of each candidate. b. Consider the candidate's word as truth to ensure a culture of trust and honesty. c. Require candidates to certify that all information on their résumé is accurate. d. Verify the candidate's race, age, and religion during the interview.
Your inner critic lowers your self-esteem by
A) telling you that your height/weight ratio is poor. B) establishing unrealistic goals for you. C) reminding you to obey rules and regulations. D) sending you negative messages about your capabilities.
Which of the following would not be a participant at a due diligence meeting?
a. management representatives b. company counsel c. SEC staff d. underwriters
Which of the following statements is true of a franchise process?
A. A significant up-front cash payment is necessary for making an initial fee payment by a franchisee. B. The founding of a franchise is quite different in form and method from creating a new business from scratch. C. The entrepreneur can easily leave the franchisee business if he or she does not enjoy the business venture. D. A market analysis by a franchisor is the best available method to understand a market and to organize franchise operations.