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

Question

Quizplus · Accepted Answer

Focusing on maximizing shareholder wealth is a primary goal for managers in many companies. If managers do not pursue this goal, they risk underperforming in the eyes of the shareholders, which can lead to them losing their jobs due to dissatisfaction from the shareholders or the board of directors who represent the shareholders' interests.

If Managers Do Not Pursue the Goal of Maximising Shareholder