A Typical 'Public' Company Has Many Types of Shareholders, from Individuals

question 80

Multiple Choice

A typical 'public' company has many types of shareholders, from individuals holding a few shares, to large institutions that hold very large numbers of shares. How does a financial manager ensure that the priorities and concerns of such disparate shareholders are met?

• A)The decisions taken by the financial manager should be solely influenced by the benefit to the company since, by maximising its fitness, he or she will also maximise the benefits of that company to the shareholders.
• B)The financial manager should seek to make investments that do not harm the interests of the shareholders.
• C)In general, all shareholders will agree that they are better off if the financial manager works to maximise the value of their investment.
• D)The financial manager should consider the interests and concerns of large shareholders a priority, so the needs of those who hold a controlling interest in the company are met.

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Definitions:

SAS Proficiency

The level of skill or expertise in using SAS software, which is widely used for statistical analysis and data management.

GAISE

Guidelines for Assessment and Instruction in Statistics Education; provides recommendations for teaching statistics.

Statistical Software

Software specialized for statistical analysis, used by researchers and data analysts to perform complex calculations, data analysis, and visualization.

SAS Proficiency

The level of skill and knowledge in using the Statistical Analysis System (SAS) software, a tool for data management, advanced analytics, multivariate analysis, business intelligence, and predictive analytics.