To whom does the management owe its ultimate allegiance?
A) Employees
B) Creditors
C) Shareholders
D) Government

Question

Quizplus · Accepted Answer

The management owes its ultimate allegiance to the shareholders as they own the company and entrust the management with the responsibility to run the business in their best interests. The primary goal of management is to maximize shareholder wealth through profits and dividend distributions.

To Whom Does the Management Owe Its Ultimate Allegiance