A typical company has many types of shareholders,from individuals holding a few shares,to large institutions that hold very large numbers of shares.How does a financial manager ensure that the priorities and concerns of such disparate stockholders are met?
A) The financial manager should seek to make investments that do not harm the interests of the stockholders.
B) The decisions taken by the financial manager should be solely influenced by the benefit to the company since,by maximizing its fitness,he or she will also maximize the benefits of that company to the shareholders.
C) The financial manager should consider the interests and concerns of large shareholders a priority,so the needs of those who hold a controlling interest in the company are met.
D) In general,all shareholders will agree that they are better off if the financial manager works to maximize the value of their investment.
E) The financial manager will consider the priorities of all the shareholders at the annual shareholders' meeting.
Correct Answer:
Verified
Q41: A corporate raider gains a controlling fraction
Q42: A company that produces racing motorbikes has
Q43: Which of the following are major duties
Q44: In most corporations the owners exercise direct
Q45: Why is the stock price of a
Q47: A company's board of directors chooses to
Q48: How do the shareholders of most corporations
Q49: Why in general do financial managers make
Q50: What is the principal guiding factor for
Q51: What is the most common way that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents