The shareholder model holds that management's most important responsibility is the firm's long-term survival (not just maximizing profits). According to the shareholder model, long-term survival is achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders).

Question

Quizplus · Accepted Answer

The shareholder model, also known as shareholder primacy, posits that a corporation's primary responsibility is to its shareholders, focusing on maximizing shareholder value, rather than balancing the interests of multiple stakeholders.

The Shareholder Model Holds That Management's Most Important Responsibility Is