A board of directors is considering whether to invest a great deal of money into research and development.Such a decision could have a long-term beneficial effect for the company's future.As an alternative,the board could forego the expenditure into research and development and buy back its own shares in order to immediately increase the company's reserves.Which of the below groups would most likely favor the option to increase the company's reserves and not invest in more research and development?

Question

Quizplus · Accepted Answer

Shareholders would be most likely to favor the option to increase the company's reserves and not invest in more research and development, as it would lead to an immediate increase in the value of their shares. Management may be more interested in the long-term benefits of investing in research and development, and stakeholders other than the shareholders may have varying opinions depending on their specific interests.

A Board of Directors Is Considering Whether to Invest a Great