What Is the Result of Managers' Pursuit of Strategies That

question 101

Multiple Choice

What is the result of managers' pursuit of strategies that define value creation too narrowly in public stock companies?

• A) It gives the managers greater control of the performance of the organization in the long term.
• B) It reduces the trust of shareholders in the organization as a vehicle for value creation.
• C) It helps companies increase firm profits by creating shared value.
• D) It enables companies to create social value by addressing society's needs but prevents them from creating economic value for shareholders.

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Definitions:

Incurring Obligations

The act of binding oneself by a social, legal, or moral requirement to do something or incur a liability.

Using Ambiguity

The practice of deliberately employing vague or unclear language to obscure meaning or to avoid making definite statements.

Power Position

Power Position denotes a stance or status in which an individual or entity possesses the ability to influence or control the behavior of others.

Power-Balancing Tactics

Strategies used by individuals or groups within organizations to equalize power distribution and reduce power disparities.