German Executives Are Not Dedicated to the Maximization of Shareholder

question 94

Multiple Choice

German executives are not dedicated to the maximization of shareholder value largely because

• A) the roles of CEO and chairperson of the board of directors are usually combined.
• B) large institutional investors control large blocks of stock.
• C) private shareholders rarely have large ownership positions in the firm.
• D) of the focus on stewardship-management in German firms rather than the financial performance focus of U.S. firms.

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Definitions:

Direct Labor

Workers or employees directly involved in the production of goods and services, whose wages are considered a direct cost of production.

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs.

Direct Labor Standards

Established benchmarks that specify the amount of direct labor time and the cost that should be involved in producing one unit of finished goods.

Labor Cost

The total amount of money paid for employee wages, benefits, and taxes by a business.