The Duty of a Firm to Maximize Financial Returns for Its

question 219

Multiple Choice

The duty of a firm to maximize financial returns for its owners or stockholders is referred to as

• A) social responsibility.
• B) value consciousness.
• C) benefit marketing.
• D) profit responsibility.
• E) stakeholder responsibility.

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Definitions:

Disaffirm

The act of rejecting, denying, or voiding a contract or agreement, especially one entered into by a minor or under conditions that render it voidable.

Age Of Majority

The legal age at which an individual is considered legally competent to consent to contracts and manage personal affairs; varies by country, generally 18 or 21 years old.

Emancipated

Refers to a minor who has been legally freed from control by their parents or guardians, obtaining adult rights and responsibilities.

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts, subject to age, mental competency, and other legal qualifications.