721. All constituencies with a stake in the fortunes of the company are known as __________.
A. Shareholders.
B.Stakeholders.
C.Creditors.
D.Customers

722. Whichof the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?
A.EPS maximization ignores the firm’s risk level.
B.EPS maximization does not specify the timing or duration of expected EPS.
C.EPSmaximization naturally requires all earnings to be retained.
D.EPS maximization is concerned with maximizing net income.

723. __________ is concerned with the maximization of a firm’s stock price.
A.Shareholder wealth maximization.
B.Profit maximization.
C.takeholder welfare maximization

724. Corporate governance success includes three key groups. _____________ represents these three groups.
A.Suppliers, managers, and customers.
B.Board of directors, executive officers, and common shareholders.
C.Suppliers, employees, and customers.
D.Common shareholders, managers, and employees.

725. In 2 years you are to receive Rs.10, 000. If the interest rate were to suddenly decrease, the present value of that future amount to you would __________.
A.Fall.
B.Rise.
C. Remain unchanged.
D. Cannot be determined

726. Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as __________.
A.Present value.
B.Simple interest.
C.Future value.
D.Compound interest

727. The long-run objective of financial management is to _____________.
A.Maximize earnings per share.
B.Maximize the value of the firm’s common stock.
C.Maximize return on investment.
D.Maximize market share.

728. Whichone of the following is / are the relevance theory?
A.Gorden.
B.Walter.
C.Residual.
D.Both (a) and (b)

729. A set of possible values that a random variable can assume and their associated probabilities of occurrence are referred to as __________.
A.Probability distribution.
B.The expected return.
C.The standard deviation.
D.Coefficient of variation.

730. Theweighted average of possible returns, with the weights being the probabilities of occurrence is referred to as __________.
A.Aprobability distribution.
B.The expected return.
C.The standard deviation.
D.Coefficient of variation.

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