Maximizing Shareholder Value Is

question 21

Multiple Choice

Maximizing shareholder value is

• A) a byproduct of a company's cost reduction programs.
• B) not generally a viable goal for a company.
• C) not the responsibility of a company's managers.
• D) the ultimate goal of profit-making companies.
• E) not required to attract risk capital.

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Definitions:

Share

A unit of ownership interest in a corporation or financial asset that provides for an equal distribution in any profits, if any are declared, in the form of dividends.

Democracy

A form of government in which power is vested in the people, who rule either directly or through freely elected representatives.

Alexander Tytler

A Scottish historian and writer often cited, sometimes inaccurately, in discussions about democracy and societal cycles.

Excessive Debt

A situation where an individual or entity has more debt than they can manage or repay in a reasonable timeframe.