The Main Problem of a Company Establishing Shareholder Value Creation

question 30

Multiple Choice

The main problem of a company establishing shareholder value creation as its primary performance goal is:

• A)Shareholder value maximization is appropriate only for financial service companies
• B)Pursuing shareholder value inevitably leads to unethical behavior by senior managers
• C)Focusing on shareholder value does not necessarily encourage managers to concentrate on the actions and activities that create the profits that are the source of shareholder value
• D)Pursuing shareholder value is likely to be detrimental to employee morale and customer satisfaction

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Definitions:

Rorschach Tests

A psychological test consisting of inkblots displayed to a participant, aiming to analyze their interpretations and emotional functioning.

Scoring System

A scoring system is a standardized method for quantifying achievements, performance, or characteristics, often used in games, tests, or evaluations to rank or rate outcomes.

Standards for Scoring

The established criteria or guidelines used to measure, evaluate, or judge the quality or performance of something within a specified context.

Rorschach Inkblot Test

A mental assessment where individuals' views on inkblots are noted and subsequently examined through the lens of psychological analysis.