If Managers Do Not Pursue the Goal of Maximising Shareholder

question 40

Multiple Choice

If managers do not pursue the goal of maximising shareholder wealth [blank].

• A)they concentrate on more important matters like growing market share
• B)they can focus more on social responsibilities
• C)they are likely to lose their jobs
• D)they can focus more on long-term profitability

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Definitions:

Competitive Private Market

A market structure where multiple firms compete against each other under minimal governmental intervention, offering goods and services to consumers.

Copyright Laws

Legal protections granted to creators for their original works, preventing unauthorized use or distribution.

Private Good

a category of goods that are excludable and rival in consumption, meaning that access can be restricted and one person's consumption prevents another's.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.