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Which of the Following Statements Is True

Question 6

Multiple Choice

Which of the following statements is true?


A) Incredibly, nepotism tends to be in shareholders' best interest.
B) If a firm is enjoying a period of profitability and its profits is are being expropriated by its employees, management's best course of action may be to sell off the firm's assets and
Return the funds to its investors.
C) The management of dying companies should focus on selling off the firm's assets and returning the funds to its investors; the management of healthy companies should focus on
Growing bigger.
D) Managers who wish to increase shareholder wealth will seek to grow, or at least prevent shrinking, their firm's business.

Correct Answer:

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