When conflicts arise between the long-term interests of owners and those of other stakeholders, financial managers generally adopt the policies they believe are most consistent with the interests of ownership.

Question

Quizplus · Accepted Answer

Financial managers have a fiduciary duty to act in the best interest of their shareholders, which means they prioritize the long-term interests of owners over those of other stakeholders (such as employees, customers, and suppliers).

When Conflicts Arise Between the Long-Term Interests of Owners and Those