A Manager Who Primarily Focuses on the Shareholders of the Corporation

question 20

Multiple Choice

A manager who primarily focuses on the shareholders of the corporation rather than all of the vested parties in the businesses operations and activities is practicing which theory of normative business ethics?

• A) Stakeholder theory
• B) Investor theory
• C) Stockholder theory
• D) Shareholder theory
• E) Social contract theory

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Definitions:

Repairs and Maintenance

Expenditures made to restore or maintain the functionality and efficiency of an asset without extending its useful life significantly.

Net Income

The amount of money a company has earned during a specific period, after all deductions are made.

Ordinary Repairs

Expenses for routine maintenance and repairs that maintain the efficient operation of an asset but do not materially extend its life or increase its value.

Hydraulic Lift

A system that uses a fluid-driven mechanism to lift or move objects, often utilized in various machinery and equipment.