If a Firm's Managers Want to Maximize Stock Price It

question 2

True/False

If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.

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Definitions:

Industrial Relations School

An academic field of study that focuses on the relationships between employers, employees, unions, and the government in the workplace and the labor market.

Legal Treatment

The manner in which a matter is handled in a legal context, including the application of laws, regulations, and judicial rulings.

Legally Sanctioned

Actions or behaviors that are permitted or approved by law, often implying that they are backed by legal authority or enforcement mechanisms.

Injunctions

Court orders that require a party to do or to refrain from doing specific acts, often used in labor disputes to halt strike actions or enforce agreements.