A corporation that operates ethically will notice certain benefits as it applies to shareholder wealth maximization.With shareholder wealth maximization in mind, all of the following could be experienced by an ethical corporation EXCEPT:
A)The corporation can expect to have reduced litigation expense.
B)The cooperation can expect to have greater agency costs.
C)The corporation can expect to have reduced damages expenses.
D)The corporation can expect to have a more favorable impression by customers and investors.

Question

Quizplus · Accepted Answer

Ethical corporations are likely to experience reduced litigation and damages expenses because they are less likely to engage in unethical or illegal behavior. Additionally, a more favorable impression by customers and investors can lead to increased sales and higher stock prices. However, ethical corporations may also experience greater agency costs because they may prioritize ethical behavior over short-term financial gains, which can lead to conflicts with shareholders who are primarily concerned with maximizing profits.

A Corporation That Operates Ethically Will Notice Certain Benefits as It