Managers Always Attempt to Maximize the Long-Run Value of Their

question 26

True/False

Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible. However, there can be conflicts between stockholders and bondholders.

---

Definitions:

Informed Consent

The process by which a fully informed person can participate in choices about their care or participation in research, based on understanding the risks, benefits, and alternatives involved.

Meta-Analysis

A statistical procedure that combines the results of multiple scientific studies to find an overall effect.

Debriefing

A discussion or interview that follows after a task or experiment, often used in psychological studies to explain the purpose and need for the study, and to ensure the well-being of participants.

Clinical Interview

A method used by psychologists to gather information about a person's mental health and functioning through a structured conversation.