Raj, a Student of Business Management, Claims That the Shareholder

question 52

Multiple Choice

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management. Which of the following statements should he use in order to best support his claim?

• A)The shareholders are not the legal owners of the corporation's assets.
• B)Financial capital is the most important input into making a business successful.
• C)The shareholders cannot not trade or own any stock of the corporation.
• D)Managing for shareholder value creates negative consequences for firms.

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Definitions:

Major Depression

A mental disorder characterized by a pervasive and persistent low mood accompanied by low self-esteem and a loss of interest or pleasure in normally enjoyable activities.

Cognitive Behavioural Therapy

A type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, focusing on changing negative thought patterns.

Mindfulness-Based Cognitive Behavioural Therapy

This is a therapeutic approach combining mindfulness strategies and practices with cognitive behavioural therapy to address various psychological conditions by improving present moment awareness and cognitive responses.

Compassion

A deep awareness of and sympathy for another's suffering, combined with the desire to alleviate that suffering.