An objection to managing a firm on behalf of stakeholders rather than shareholders is that ________.

Question

Quizplus · Accepted Answer

Managing a firm on behalf of stakeholders can be challenging because different stakeholders may have conflicting economic interests. It may not be possible to satisfy all stakeholders, and there may not be a clear way to prioritize their interests. This objection suggests that it may be easier to manage a firm solely on behalf of shareholders, who have a clear economic interest in the firm's success.

An Objection to Managing a Firm on Behalf of Stakeholders