Jiao, a Student of Business Management, Claims That the Shareholder

question 33

Multiple Choice

Jiao, a student of business management, claims that the shareholder primacy model is better than the stakeholder model of business management. Which of the following statements best supports her claim?

• A)The customers are the legal owners of the corporation's assets.
• B)The most important input into making a business successful is wealth.
• C)The shareholders own stock of a corporation that they can easily trade.
• D)The shareholders have different objectives for investing in a firm.

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Definitions:

Par Value

The nominal or face value of a stock or bond, set at the time of its issuance.

Issue Price

The price at which new or existing securities are offered for sale to the public or an individual.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating potential of an investment.

Cash Dividends Per Share

A measure of the amount of cash dividends paid out to shareholders per share of common stock.