In firms that are attractive to shareholders the actions of senior management align with the interests of shareholders. What term is used to describe such a situation?

Question

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Goal congruence refers to the situation where the goals and objectives of senior management align with those of shareholders. This means that the actions of senior management are geared towards maximizing shareholder value, which is one of the primary goals of most firms. Profit maximisation (B) refers to the objective of maximizing profits, which may not necessarily align with the interests of shareholders in the long term. Competitive maximisation (D) is not a commonly used term in relation to aligning management actions with the interests of shareholders. A Company congruence (A) is not a commonly used term in this context.

In Firms That Are Attractive to Shareholders the Actions of Senior