A Company That Focuses Primarily on Stock Prices,profits,and Dividends to Shareholders

question 53

Multiple Choice

A company that focuses primarily on stock prices,profits,and dividends to shareholders is likely to have which of the following outcomes?

• A)It is likely to make large profits and thrive long-term,because the primary function of a corporation is to continue and maximize profits.
• B)It is likely to make large profits and thrive long-term,but have high turnover of employees because they will not be comfortable making the unethical decisions necessary to maximize profits.
• C)It is likely to make large profits but then lose them as it settles lawsuits brought against it by shareholders for fraud.
• D)It is likely to make large profits in the short-term,but fail ultimately because the profit motive will force employees into unethical behavior that will bring the company down eventually.
• E)It is likely to fail from the beginning,because a company that focuses on profits at the expense of all else will not be able to gain customers.

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Definitions:

Magnetic Properties

Characteristics of materials that determine their response to an applied magnetic field, including magnetization and magnetic susceptibility.

Hydrogen Atoms

The simplest and most abundant element in the universe, consisting of one proton and one electron.

Water Molecule

the smallest unit of water (H2O), consisting of two hydrogen atoms bonded to one oxygen atom.

Electron Shells

Regions around an atom's nucleus where electrons are likely to be found, each shell having a fixed capacity for electrons.