I want assistance with this question:
Goals of the Firm: You may have heard big business critized for focusing on short-term performance at the expense of long-term results. How do i explain why a firm that strives to maximize stock price should be less subject to an overemphasis on short-term results that one that simply maximizes profit. And Goals of the firm: We claim that the goal of a firm is to maximize current market value. Could the following actions be consistent with that goal?
a. The firm adds a cost-of-living adjustment to the pensions of its retired employees.
b. The firm reduces its dividend payment, choosing to reinvest more of earnings in the business.
c. The firm buys a corporate jet for its executives.
d. The firm drills for oil in a remote jungle. The chance of finding oil is 1 in 5.
Goals of the Firm: How do i explain why each of the following may not be appropriate corporate goals: a. Increase market share b. Minimize costs c.Underprize any competitors d. Expand profits.