Which of the Following Are Disadvantages Claimed for the Stakeholder

question 37

Multiple Choice

Which of the following are disadvantages claimed for the stakeholder model of governance? Choose all that apply.

• A) Employees suffer financially as a larger proportion of funds are diverted to pay dividends.
• B) Growth and entrepreneurial activity suffers because there are fewer alternatives for raising finance.
• C) Without pressure from shareholders, projects may be adopted that lead to results that are below market expectations.
• D) Close monitoring of management makes it difficult for them to make decisions quickly.

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Definitions:

Indirect Quotation

A method of quoting exchange rates in terms of how much foreign currency can be exchanged for a unit of domestic currency.

Foreign Currency

The currency used in a country other than the one where a company or individual is located, impacting financial transactions and reports when exchanged.

Canadian Dollars

The official currency of Canada, often represented by the symbol CAD.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.