How are shareholders affected by a firm's strategies?
A) Their wealth increases or decreases with firm's actions
B) Their interests increase or decrease with firm's actions
C) Their participation increases or decreases with firm's actions
D) Their decisions influence the firm's strategies.

Question

Quizplus · Accepted Answer

Shareholders are affected by a firm's strategies in terms of their wealth. If the firm's strategies are successful, shareholders can expect an increase in the value of their investment. On the other hand, if the firm's strategies fail, shareholders can expect a decrease in the value of their investment. Therefore, the best choice is A - their wealth increases or decreases with the firm's actions.

How Are Shareholders Affected by a Firm's Strategies