Final answer:
The correct answer is option a. The rules surrounding the calculation of earnings-per-share are designed to maximize comparability by minimizing differences in the calculation from one company to the next. This standardization allows for accurate financial comparisons, making 'a. maximize; minimizing' the correct option.
Step-by-step explanation:
The calculation of earnings-per-share (EPS) is governed by specific rules to ensure that investors and other stakeholders can compare financial performance across different companies. These rules are designed to maximize comparability by minimizing differences in the calculation from one company to the next. EPS is a critical financial metric that indicates how much money a company makes for each share of its stock, and standardized calculation methods are vital for accurate comparisons.
Earnings-per-share is calculated by taking the company's net income minus any preferred dividend payments and dividing that figure by the average number of outstanding shares. This measure provides insight into the company's profitability on a per-share basis, which is a useful comparison point when looking at potential investments or analyzing a company's financial health relative to its competitors.
Therefore, the correct answer to the multiple-choice question is a. maximize; minimizing. This choice emphasizes the importance of uniformity in financial reporting, as it allows analysts and investors to make meaningful comparisons of corporate earnings on a per-share basis without having to account for varied calculation methodologies that could skew the results.