Which of the Following Are Advantages Claimed for the Shareholder

question 47

Multiple Choice

Which of the following are advantages claimed for the shareholder model of governance? Choose all that apply.

• A) It makes it easier for management to make objective strategic decisions.
• B) It reduces the risk of short- termism.
• C) Investors get a higher rate of return.
• D) It encourages economic growth and entrepreneurship.

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Definitions:

Differentiating

The process of distinguishing a product or service from others in the market to attract a specific segment of customers.

Barrier to Entry

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Exclusive Rights

Legal rights granted to individuals or firms, limiting others from reproducing, publishing, or selling particular goods or services.

Market Power

The ability of a company or entity to influence the price and production levels in a market.