If managers do not pursue the goal of maximizing shareholder wealth
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

Managers who do not focus on maximizing shareholder wealth may face job insecurity because shareholders expect managers to work towards increasing the value of their investment. If managers prioritize other objectives over shareholder wealth, they might be replaced by those who align more closely with shareholder interests.

If Managers Do Not Pursue the Goal of Maximizing Shareholder