According to Michael Porter,which of the Following Is a Problem

question 65

Multiple Choice

According to Michael Porter,which of the following is a problem with many publicly traded companies?

• A) Shareholders of publicly traded companies do not have a legitimate claim on profits.
• B) Many publicly traded companies have defined value creation too narrowly in terms of financial performance.
• C) There is no transferability of stock ownership in publicly traded companies.
• D) The legal owners of publicly traded companies also make management decisions for the company.

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Definitions:

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, pertaining to various global issues.

International Sales Contract

A legally binding agreement between parties from different countries for the sale and purchase of goods.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.

Notice of Breach

A formal notification given to a party indicating that they have failed to fulfill their contractual obligations.