Evidence Suggests That the Best Way to Maximize the Long-Run

question 45

Multiple Choice

Evidence suggests that the best way to maximize the long-run return to shareholders is to focus on:

• A) increasing prices.
• B) research and development goals.
• C) satisfying customer needs and making sure that employees are fairly treated.
• D) compensating managers well.
• E) maximizing employee overtime.

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Definitions:

Double Taxation

The imposition of taxes on the same income, assets, or financial transaction at two different levels of government, such as corporate income being taxed both to the corporation and to the shareholders when distributed as dividends.

Economic Growth

A rise in the production of goods and services per capita over a certain time frame.

Saving Rate

The proportion of income that is not spent on consumption but is instead saved by individuals or entities.

National Debt

The total amount of money that a country's government has borrowed, usually as a result of spending more than it receives in taxes.