Satisfying the Needs of Shareholders, Instead of Other Stakeholders, Must

question 40

Multiple Choice

Satisfying the needs of shareholders, instead of other stakeholders, must be paramount to a business because

• A) This objective is always consistent with those of other stakeholders
• B) Government will put pressure on a business to do so
• C) Other stakeholders do not have an impact on the success of the business
• D) Shareholders will always ensure that the needs of other stakeholders will be met
• E) If the management team does not pursue this goal, they will be replaced

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Definitions:

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or economy.

Cost

Cost pertains to the value of economic resources used in the production of goods or services, often reflected in terms of money expended.

Units

Basic quantities or measurements, such as pieces or portions, used in economic analyses to quantify variables.