Under the Shareholder Wealth Maximization Model of Corporate Governance, Poor

question 5

Multiple Choice

Under the Shareholder Wealth Maximization Model of corporate governance, poor firm performance is likely to be faced with all but which of the following?

• A)Sale of shares by disgruntled current shareholders.
• B)Shareholder activism to attempt a change in current management.
• C)As a maximum threat, initiation of a corporate takeover.
• D)Prison time for executive management.

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Definitions:

Rationalization

The process of making actions or outcomes seem reasonable or logical, often by creating a plausible explanation.

Efficient Means

Methods or strategies that achieve desired outcomes with the least amount of waste, effort, or expense.

Unintended

Outcomes or effects that were not planned or foreseen.

Rationalization

The process of logically justifying behaviors, decisions, or beliefs, often after the fact, to make them appear reasonable or societally acceptable.