The Most Effective Remedy for the Problems That Have Arisen

question 40

Multiple Choice

The most effective remedy for the problems that have arisen from top managements' pursuit of shareholder value is likely to be:

• A)Increased government regulation
• B)Recognition that management should focus not on stock market capitalization but upon the underlying drivers of long run profitability
• C)Companies explicit commitment to the goal creating stakeholder value
• D)Increased shareholder activism.

---

Definitions:

Discharge

The act of fulfilling or settling an obligation or debt.

Chapter 13

A type of bankruptcy filing in the United States that allows individuals with regular income to develop a plan to repay all or part of their debts.

Payments

The transfer of money, goods, or services from one party to another as fulfillment of an obligation or settlement of a debt.

Plan

A detailed proposal for doing or achieving something, often outlining objectives, strategies, and actions.