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:

Alignment Of Strategies

The process of ensuring all aspects of an organization's strategies are coordinated and supportive of the organization's goals and objectives.

Performance Management

A systematic process by which an organization involves its employees in improving organizational effectiveness in the accomplishment of the organization's mission and goals.

Functional Fit

A measure of how well a particular strategy, process, or system suits the operational needs of an organization.

Concept Of Fit

The degree to which an individual's skills, values, and interests align with the culture and requirements of an organization or a specific job.