Why Should Satisfying Stockholder Demands Receive So Much Attention in Many

question 62

Multiple Choice

Why should satisfying stockholder demands receive so much attention in many corporate mission statements?

• A) Stockholders are the most powerful stakeholder group that a company has to satisfy.
• B) Stockholders are the legal owners of the company and are the providers of risk capital.
• C) Stockholders have been successful in blackmailing companies to get their interest satisfied before those of other claimants.
• D) Typically, stockholders have the most invested in the company's continued survival.
• E) Managers feel obliged to pay lip service to stockholder demands.

---

Definitions:

Cash Inflows

Funds entering a business or project, typically received through sales, investments, or financing.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash assets.

Internal Rate

Internal rate usually refers to the internal rate of return (IRR), a financial metric used to assess the profitability of investments by calculating the interest rate that makes the net present value (NPV) of all cash flows from a particular project or investment equal to zero.

Accept

In financial terms, it often refers to a bank's agreement to honor a draft or other financial instrument payable at a future date.