Evidence suggests that the best way to maximize the long-run return to shareholders is to focus on:
A) increasing prices.
B) research and development goals.
C) satisfying customer needs and making sure that employees are fairly treated.
D) compensating managers well.
E) maximizing employee overtime.

Question

Quizplus · Accepted Answer

Focusing on satisfying customer needs and ensuring fair treatment of employees can lead to customer loyalty and employee satisfaction, which can result in increased profitability and long-term value to shareholders. Increasing prices may lead to short-term gains but could also decrease demand and hurt the business in the long run. Research and development goals are important but should be balanced with the needs of customers and employees. Compensating managers well and maximizing employee overtime may not directly lead to long-term value for shareholders.

Evidence Suggests That the Best Way to Maximize the Long-Run