The primary operating goal of a publicly$-$owned firm trying to best serve its stockholders should be to

Group of answer choices

Maximize managers' own interests, which are by definition consistent with maximizing shareholders' wealth.

Maximize the firm's expected EPS, which must also maximize the firm's price per share.

Minimize the firm's risks because most stockholders dislike risk. In turn, this will maximize the firm's stock price.

Use a well$-$structured managerial compensation package to reduce conflicts that may exist between stockholders and managers.

Since it is impossible to measure a stock's intrinsic value, the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value. If a corporation elects to be taxed as an S corporation, then both it and its stockholders can avoid all Federal taxes. This provision was put into the Federal Tax Code in order to encourage the formation of small businesses.

Group of answer choices

True

False The primary operating goal of a publicly$-$owned firm interested in serving its stockholders should be to

Group of answer choices

Maximize its expected total corporate income.

Maximize its expected EPS.

Minimize the chances of losses.

Maximize the stock price per share over the long run, which is the stock's intrinsic value.

Maximize the stock price on a specific target date.

Which of the following statements is CORRECT?

Group of answer choices

One of the advantages of the corporate form of organization is that it avoids double taxation.

It is easier to transfer one's ownership interest in a partnership than in a corporation.

One of the disadvantages of a proprietorship is that the proprietor is exposed to unlimited liability.

One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i$.$e$.,$ "one person, one vote."

Corporations of all types are subject to the corporate income tax.