Which of the Following Could Be a Reason Why Managers

question 7

Multiple Choice

Which of the following could be a reason why managers bias their decisions towards actions that reveal the most favourable information to investors?

• A)To maintain their autonomy
• B)To create value for the equity share holders
• C)To increase demand for the firm's products
• D)To improve the average share price

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Definitions:

Wrongful Conduct

Actions or behaviors that are illegal or morally incorrect, often resulting in harm or injury to others.

Law of Torts

A body of rights, obligations, and remedies that is applied by courts in civil proceedings to provide relief for persons who have suffered harm from the wrongful acts of others.

Punitive Damages

Money damages that may be awarded to a plaintiff to punish the defendant and deter future similar conduct.

Gross Negligence

A severe lack of care or the deliberate disregard of one's responsibilities, often resulting in harm or damage.