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:

Younger Adults

Individuals in a demographic group that typically ranges from late adolescence to early middle age, often associated with periods of significant personal, professional, and developmental changes.

Continuity Theory

A psychological concept suggesting that individuals maintain consistent patterns of behavior, personality, and adaptation throughout their life.

Development

The process of growth, change, and progress in physical, social, economic, and emotional dimensions across the lifespan or within societies.

Infant

A young child in the earliest period of life, especially from birth to one year of age.