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:

Simon Fraser University

A public research university located in British Columbia, Canada, known for its comprehensive academic and research programs.

Method of Acceptance

The ways in which an offeree can accept an offer in contract law, such as by performance, promise, or as otherwise stipulated in the offer.

Smoked Salmon

Smoked Salmon is a preparation of salmon, typically cured and then smoked, either hot or cold, used as a delicacy in various cuisines.

Letter of Acceptance

A formal document issued to acknowledge agreement to the terms of a contract, often marking the commencement of the contractual obligations.