If Managers Do Not Pursue the Goal of Maximising Shareholder

question 72

Multiple Choice

If managers do not pursue the goal of maximising shareholder wealth

• 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:

Inventory Shrinkage

The decrease in product inventory from the time of acquisition from a supplier to the moment it's sold to a customer, frequently as a result of theft, damage, or mistakes.

Credit Memo

A document issued to a buyer, crediting them for part of a sale due to a return or overcharge.

Sales Invoice

A document issued by a seller to a buyer, detailing a transaction's products, quantities, and agreed prices for products or services the seller has provided.

Bank Credit Cards

Financial tools issued by banks that allow users to borrow funds for purchases or cash advances, subject to repayment terms and credit limits.