One Problem with Maximization of Shareholder Wealth as a Goal

question 134

True/False

One problem with maximization of shareholder wealth as a goal is that it ignores risk taken by the firm's financial decisions.

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Definitions:

Organizational Politics

The actions and conduct engaged by people in a work environment to obtain authority, sway decision-making, and realize individual or collective ambitions.

Potentially Functional

Describes something that may serve a purpose or be useful in some way, though it may not currently be in operation or use.

Dysfunctional

Behaviors or characteristics that negatively impact the functioning of an individual, group, or organization, often leading to decreased performance or well-being.

Behaviours

Actions or reactions of individuals, often in response to external stimuli, that can be observed and measured.