Although people's moral characters are probably developed before they are admitted to a business school, it is still useful for business schools to cover if only to give students an idea about the adverse consequences of behavior to themselves, their firms, and the nation. "Whistle blowers, " because of the courage it takes to blow the whistle, are generally promoted more rapidly than other employees. The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to Minimize the firm's risks because most stockholders dislike risk, in turn, this will maximize the firm's stock price. Use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers. Maximize managers own interests, which are by definition consistent with maximizing shareholders wealth. Since it is impossible to measure a stock's intrinsic value, the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value. Maximize the firm's expected EPS, which must also maximize the firm's price per share. Which of the following statements is CORRECT? The bid price in a hostile takeover is generally above the price before the takeover attempt is announced because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail