Managers should concentrate on maximizing shareholder value alone if which of the following conditions are met?
A) complete markets
B) no significant asymmetric information
C) known recontracting costs
D) all of the above
E) none of the above

Question

​Managers should concentrate on maximizing shareholder value alone if which of the following conditions are met?
A) ​complete markets
B) ​no significant asymmetric information
C) ​known recontracting costs
D) ​all of the above
E) ​none of the above

Quizplus · Accepted Answer

Maximizing shareholder value is considered as an appropriate goal for managers when there are complete markets, no significant asymmetric information, and known recontracting costs. In such conditions, managers can make decisions that benefit shareholders without causing harm to other stakeholders. Therefore, all of the above conditions must be met for managers to concentrate on maximizing shareholder value alone.

​Managers Should Concentrate on Maximizing Shareholder Value Alone If Which

Managers Should Concentrate on Maximizing Shareholder Value Alone If Which