The Argument Against a Shareholder Model and in Favor of a Stakeholder

question 134

Multiple Choice

The argument against a shareholder model and in favor of a stakeholder model rests in part on the notion that:

• A) Corporations are legally sanctioned by the government and thus the rights of shareholders are not unlimited.
• B) According to utilitarian ethics, managers have a moral obligation to consider all perspectives.
• C) According to libertarian ethics, managers must preserve the freedom of all stakeholders in their decision-making.
• D) A focus on short-term profits will, in the long run, maximize utility in society .

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