The assumption that the maximization of shareholder value equates to long-term maximization of profit, is justified partly by "simplicity" which means that:
A)The battle between many stakeholders requires common goals
B)to attempt to satisfy all multiple stakeholder goals would lead to managerial paralysis
C)It allows a firm to have a single objective
D)No one will ever be able to fully understand a firm's goals

Question

Quizplus · Accepted Answer

The assumption is justified by the idea that trying to satisfy multiple stakeholder goals can lead to complexity and indecision, whereas focusing on shareholder value provides a clear, singular objective.

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