German Executives Are Not Dedicated to the Maximization of Shareholder

question 94

Multiple Choice

German executives are not dedicated to the maximization of shareholder value largely because

• A) the roles of CEO and chairperson of the board of directors are usually combined.
• B) large institutional investors control large blocks of stock.
• C) private shareholders rarely have large ownership positions in the firm.
• D) of the focus on stewardship-management in German firms rather than the financial performance focus of U.S. firms.

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Definitions:

Contextual Awareness

The ability to understand the significance of the environment or the circumstances surrounding a specific situation, event, or decision.

Severe Malnutrition

A dangerous condition that occurs from consuming a diet in which nutrients are either not enough or are too much.

Family Neglect

A form of maltreatment where a family member's basic needs and care are persistently ignored or unmet, often leading to harm or deprivation.

Fair-Mindedness

The quality of being impartial and just, treating all sides with equality and fairness.