Which of the Following Stakeholders Might Not Want a Company

question 15

Multiple Choice

Which of the following stakeholders might not want a company to maximize its long-run profitability and profit growth?

• A) Suppliers
• B) Creditors
• C) Customers
• D) Suppliers and customers
• E) Suppliers and creditors

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Definitions:

Tying Contracts

Agreements where the sale of one product (the tying product) is made conditional on the purchase of a second, distinct product (the tied product).

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition, ensuring fair practices in the marketplace for the benefit of consumers.

Rule of Reason

A legal doctrine used to evaluate business practices based on their actual impact on competition, considering both their pro-competitive and anti-competitive effects.

Sherman Act

The Sherman Act is a foundational antitrust law in the United States, passed in 1890, that prohibits monopolistic practices and promotes competition.