The principal driver(s)of shareholder value is (are)
A) profitability.
B) profit growth.
C) market share.
D) profitability and profit growth.
E) all of these choices.

Question

Quizplus · Accepted Answer

Both profitability and profit growth are important drivers of shareholder value. Profitability ensures that a company is generating returns on invested capital and creating value for shareholders. Profit growth indicates that the company is expanding and generating future returns, which also creates value for shareholders. Market share is important, but it is not as directly linked to shareholder value as profitability and profit growth. Thus, the best choice is D, profitability and profit growth.

The Principal Driver(s)of Shareholder Value Is (Are)