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A Manager That Primarily Focuses on the Shareholders of the Corporation

question 8

Multiple Choice

A manager that 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?


Definitions:

Price Taker

A market participant that accepts market prices as given and has no influence to alter the price of the good or service.

Buyer

A person or organization that purchases goods or services.

Law Of Demand

The economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Quantity Demanded

The quantity demanded is the amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

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