"Maximize Corporate Wealth

question 3

Multiple Choice

"Maximize corporate wealth"

• A) is the primary objective of the European/Japanese model of management.
• B) as a management objective treats shareholders on a par with other corporate stakeholders such as creditors, labor, and local community.
• C) has a broader definition than just financial wealth.
• D) all of the above

---

Definitions:

Economies of Scale

The cost advantage achieved by an increase in production, leading to a decrease in the average cost per unit through efficient allocation of resources and spreading of fixed costs.

Cost-output Elasticity

The ratio of the percentage change in cost relative to the percentage change in output, indicating how costs change with output levels.

Marginal Cost

The cost associated with producing one additional unit of a product.

Technological Change

Development of new technologies allowing factors of production to be used more effectively.