The most effective remedy for the problems that have arisen from top managements' pursuit of shareholder value is likely to be:
A)Increased government regulation
B)Recognition that management should focus not on stock market capitalization but upon the underlying drivers of long run profitability
C)Companies explicit commitment to the goal creating stakeholder value
D)Increased shareholder activism.

Question

Quizplus · Accepted Answer

The most effective remedy for the problems arising from top management's pursuit of shareholder value is to recognize that management should focus on the underlying drivers of long-run profitability rather than the stock market capitalization. Managers should place emphasis on sustainable performance and enhanced stakeholder value.

The Most Effective Remedy for the Problems That Have Arisen