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Question 222 - CTFA discussion

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Which of the following statements is correct regarding profit maximization as the primary goal?

A.
Profit maximization considers the risk level
Answers
A.
Profit maximization considers the risk level
B.
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
Answers
B.
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
C.
Profit maximization does consider the impact on individual shareholder's EPS
Answers
C.
Profit maximization does consider the impact on individual shareholder's EPS
D.
Profit maximization is concerned more with maximizing net income than the stock price
Answers
D.
Profit maximization is concerned more with maximizing net income than the stock price
Suggested answer: D
asked 16/09/2024
Vilfride Lutumba
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