A typical 'public' company has many types of shareholders, from individuals holding a few shares, to large institutions that hold very large numbers of shares. How does a financial manager ensure that the priorities and concerns of such disparate shareholders are met?
A) The financial manager should seek to make investments that do not harm the interests of the shareholders.
B) The financial manager should consider the interests and concerns of large shareholders a priority, so the needs of those who hold a controlling interest in the company are met.
C) The decisions taken by the financial manager should be solely influenced by the benefit to the company since, by maximising its fitness, he or she will also maximise the benefits of that company to the shareholders.
D) In general, all shareholders will agree that they are better off if the financial manager works to maximise the value of their investment.
Correct Answer:
Verified
Q21: Why in general do financial managers make
Q22: ValiantCorp is a corporation that earned $3
Q23: What is the major way in which
Q24: Use the figure for the question(s)
Q25: In which of the following relationships is
Q27: Why is it in general difficult to
Q28: What is the most common way that
Q29: Joe is a general partner in a
Q30: Use the figure for the question(s)
Q31: In a limited partnership, limited partners may
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents