The duty of managers,as agents of the company owners,to maximize stockholder wealth is referred to as ________ responsibilities.

Question

Quizplus · Accepted Answer

Economic responsibilities are the duty of managers to maximize stockholder wealth, which is achieved through maximizing profits and increasing the value of the company's stock. Legal responsibilities refer to the obligation of managers to comply with laws and regulations, while discretionary responsibilities involve voluntary actions taken by managers to benefit society. Ethical responsibilities involve behaving in a morally responsible way, which may include going beyond legal requirements and considering the impact of decisions on stakeholders.

The Duty of Managers,as Agents of the Company Owners,to Maximize