A Typical Company Has Many Types of Shareholders,from Individuals Holding

question 58

Multiple Choice

A typical company has many types of shareholders,from individuals holding a few shares,to large institutions that hold very large numbers of shares.How does a financial manager ensure that the priorities and concerns of such disparate stockholders are met?

• A)The financial manager should seek to make investments that do not harm the interests of the stockholders.
• B)The decisions taken by the financial manager should be solely influenced by the benefit to the company since,by maximizing its fitness,he or she will also maximize the benefits of that company to the shareholders.
• C)The financial manager should consider the interests and concerns of large shareholders a priority,so the needs of those who hold a controlling interest in the company are met.
• D)In general,all shareholders will agree that they are better off if the financial manager works to maximize the value of their investment.
• E)The financial manager will consider the priorities of all the shareholders at the annual shareholders' meeting.

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Definitions:

Pseudostratified Epithelium

A type of epithelial tissue that appears layered due to the varying lengths of cells but is actually a single layer where every cell is in contact with the basement membrane.

Hyaline Cartilage

A type of strong, flexible connective tissue found in areas such as the joints, rib cage, and respiratory tract.

Elastic Cartilage

A type of cartilage that contains elastic fibers, providing strength and elasticity, found in structures like the ear and epiglottis.

Fibrocartilage

A type of tough, dense cartilage that contains fibrous bundles of collagen, such as that found in intervertebral discs and the menisci of the knee.