The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because:

A) the market value of the firm is based on long-run profits.
B) managers will not focus on increasing short-run profits at the expense of long-run profits.
C) this would more closely align the interests of owners and managers.
D) all of the above

Market Value

The present cost at which a service or asset may be purchased or sold in the marketplace.

Long-Run Profits

Refers to the earnings a company can maintain once it has reached its full operational efficiency, typically considering all variable and fixed costs.

Managers

Individuals responsible for directing, controlling, and administering all or part of a company or similar organization.