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 are most likely to favor increasing the company's reserves and buying back shares because it would increase the value of their own shares and provide them with an immediate return.

A Board of Directors Is Considering Whether to Invest a Great