Which of the following would motivate the management of a large corporation to seek maximum profit?
A) It is presumed that the managers and directors of the corporation act in the best interest of its stockholders.
B) Management may fear an unfriendly takeover by another corporation if the firm's profitability and stock price fall.
C) Much corporate stock is held by large institutional investors who react when a corporation's management fails to maintain acceptable profit levels.
D) All of the above.
Correct Answer:
Verified
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