Stockholders are interested in the way that a company operates because they ________.
A) use the company's products
B) believe in being ethical
C) want to maximize the return on their investment
D) want to take all risks

Question

Quizplus · Accepted Answer

Stockholders are interested in the way a company operates because they want to maximize the return on their investment. Thus they watch the company and its managers closely to ensure that management is working diligently to increase the company's profitability. Stockholders also want to ensure that managers are behaving ethically and not risking investors' capital by engaging in actions that could hurt the company's reputation.

Stockholders Are Interested in the Way That a Company Operates