A Situation in Which a Firm's Managers Fail to Act

question 37

True/False

A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the stakeholder dilemma.

---

Definitions:

Voluntary Exchange

A transaction where parties involved trade goods or services by mutual agreement, without coercion.

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.

Potential Exchange

The possibility of trading goods, services, or other items of value between parties.

Trade

The exchange of goods, services, or both between two or more parties.