Maximisation of Shareholder Wealth as a Goal Is Superior to Accounting

question 36

Multiple Choice

Maximisation of shareholder wealth as a goal is superior to accounting profit maximisation because

• A)the former avoids an excessively short term focus.
• B)the former ensures high stock prices.
• C)accounting profits are not the same as cash flows.
• D)both A and C.

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Definitions:

Political Reasons

Motivations or justifications for actions that relate to government, policies, or political beliefs.

Emotional Problems

Difficulties in managing emotions that significantly disrupt daily functioning or well-being.

Altruistic Suicide

A concept in sociology where an individual commits suicide for the benefit of others or for the greater good of their community or society.

Anomic Suicide

A concept in sociology referring to a form of suicide that occurs when an individual feels disoriented and disconnected from societal norms and values.