The assumption that maximization of shareholder value equates to long-term maximization of profit, is justified partly by "competition" which means that:
A)Strong competition erodes profit, so it is always best to operate from a position of strength (high profits) in order to survive the battle
B)Stronger competition emphasizes the need to create more value and more customer loyalty
C)Competition plays at the same level across rivals and geographies, and therefore requires profit maximization
D)Stronger competition increases pressures to expand into other markets thus leading to higher profits

Question

Quizplus · Accepted Answer

The Answer of The assumption that maximization of shareholder value equates to long-term maximization of profit, is justified partly by "competition" which means that:
A)Strong competition erodes profit, so it is always best to operate from a position of strength (high profits) in order to survive the battle
B)Stronger competition emphasizes the need to create more value and more customer loyalty
C)Competition plays at the same level across rivals and geographies, and therefore requires profit maximization
D)Stronger competition increases pressures to expand into other markets thus leading to higher profits

The Assumption That Maximization of Shareholder Value Equates to Long-Term