Which of the Following Companies Is Most Committed to the Shareholder

question 40

Multiple Choice

Which of the following companies is most committed to the shareholder value approach?

• A) Company A, when it decides to expand from a microchip manufacturer to an on-line internet company.
• B) Company B, a bank that acts on opportunities to buy other distressed banks cheaply in order to grow its deposit base.
• C) Company C, an auto company that focuses on cost cutbacks and pension rollback to improve the bottom line.
• D) Company D, a software company that introduces to its mission statement shareholder values initiatives such as salary freezes.
• E) Company E, a shipping company that makes short term investments of free cash flows in oil and gas companies.

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Definitions:

Activism

Efforts to promote, impede, direct, or intervene in social, political, economic, or environmental reform with the desire to make changes in society.

Conservatives

Individuals or groups who advocate for tradition, stability, and continuity, often resisting changes to existing social, cultural, or political arrangements.

Sex Before Marriage

Refers to engaging in sexual activities between partners prior to entering into a legally or formally recognized union, such as marriage.

Sociological Perspective

A viewpoint that examines social phenomena and individual behavior within the context of larger societal forces and structures.