An Objection to Managing a Firm on Behalf of Stakeholders

question 7

Multiple Choice

An objection to managing a firm on behalf of stakeholders rather than shareholders is that ________.

• A)stakeholders have no economic interest in the firm
• B)stakeholders have an interest only in short-term outcomes
• C)there is no clear way to satisfy all stakeholders whose economic interests may be at odds with each other
• D)the goal of managing on behalf of stakeholders is too narrow

---

Definitions:

Systematic Desensitization

A therapy technique used to treat phobias and anxiety by gradually exposing patients to the feared object or situation.

Stimulus Hierarchy

An ordered list of stimuli ranging from least to most likely to elicit a response, used in desensitization therapies and other psychological treatments.

Systematic Desensitization

Systematic desensitization is a therapeutic technique used to gradually expose individuals to their phobias or fears while teaching them relaxation techniques, aiming to reduce anxiety responses.

Learn How to Relax

A process or practice of becoming less tense, anxious, or stressed, often involving techniques such as deep breathing, meditation, or yoga.