Question

Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society? Check all that apply. a. Most investors appreciate the risk companies take to maximize their stocks. b. Successful companies benefit consumers. c. Most people have an important stake in the stock market. d. People like to work for companies that minimize operating costs.

Answer 1

Answer:

The correct answer is b) succesful companies benefit consumers

Explanation:

The intrinsic stock value of a company can be thought of as its real value instead of its nominal value (or monetary value). In the intrinsic value of a stock is high, it is because the company is a healthy financial situation, and probably has good economic prospects. Companies that are run well benefit customers because they can offer goods and services at lower prices, and at higher quality.