What does management do to meet investor objectives?
A) They sell-off a higher-earning division.
B) They stay away from a possible spin off.
C) They shift investment from areas with increasing returns to those where improvement is never anticipated.
D) They try to maximize profits in their present operations.

Question

Quizplus · Accepted Answer

Management tries to maximize profits in their present operations in order to meet investor objectives. This can be achieved by improving operational efficiency, reducing costs, and increasing revenue. Selling-off a higher-earning division or shifting investments from areas with increasing returns to those where improvement is never anticipated may not necessarily lead to maximized profits in the present operations. Additionally, staying away from a possible spin off does not directly address the objective of meeting investor objectives.

What Does Management Do to Meet Investor Objectives