A Corporate Financial Manager Trying to Maximize Shareholder Value

question 104

Multiple Choice

A corporate financial manager trying to maximize shareholder value

• A) is not concerned with ethics but rather with writing iron-clad contracts.
• B) can safely ignore ethics as long as no laws are broken.
• C) must behave ethically in order to stay out of jail.
• D) is concerned with ethics because unethical behavior destroys trust, and businesses cannot function without a certain degree of trust.

---

Definitions:

Collateral

Assets or property offered as security for the repayment of a loan, subject to seizure on default.

Proceeds

The amount of money received from a sale or transaction, often after deducting costs or expenses.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make the required payments.

Debtor

A person or organization that has a debt or financial liability to another entity.