One Problem with Maximization of Shareholder Wealth as a Goal

question 134

True/False

One problem with maximization of shareholder wealth as a goal is that it ignores risk taken by the firm's financial decisions.

---

Definitions:

Vendor Hosts

Providers or businesses that offer services or space on their servers for clients or customers to use for their websites or software.

Network

A connecting system (wireline or wireless) that enables multiple computers to share resources.

ASP

Stands for Application Service Provider, a business providing computer-based services to customers over a network, such as access to a particular software application using a standard protocol.

ERP

Enterprise Resource Planning, an integrated management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions.