According to the decision tree which of the following questions necessitates that a manager considers the harm or cost of an action to shareholders against the costs or benefits to other key constituents?
A)Does the proposed action maximize shareholder value?
B)Is the proposed action ethical?
C)Does the action result in a more favorable financial position for an organization?
D)Would it be ethical not to take the action?
E)Is the proposed action legal?

Question

Quizplus · Accepted Answer

Would it be ethical not to take action? This question necessitates that a manager consider the harm or cost of an action to shareholders against the costs or benefits to other key constituents. If the costs to shareholders from a managerial decision exceed the costs or benefits to other constituents, the manager or company should not engage in the action. Conversely, the manager or company should take action when the perceived costs or benefits to the other constituents are greater than the costs to shareholders.

According to the Decision Tree Which of the Following Questions