The Assumption That the Maximization of Shareholder Value Equates to Long-Term

question 39

Multiple Choice

The assumption that the maximization of shareholder value equates to long-term maximization of profit, is justified partly by "simplicity" which means that:

• A)The battle between many stakeholders requires common goals
• B)to attempt to satisfy all multiple stakeholder goals would lead to managerial paralysis
• C)It allows a firm to have a single objective
• D)No one will ever be able to fully understand a firm's goals

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Definitions:

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various forms of instruction or training.

Wage Gap

The difference in earnings between two or more groups, often measured to assess disparities between genders, ethnicities, or other demographic categories.

High-Skill

Pertaining to jobs or workers that require a significant level of education, expertise, or experience to perform complex tasks.

Low-Skill

Referring to jobs or tasks that require a minimal level of education, training, or experience to perform.