Which of the following is true regarding shareholder primacy?

Question

Quizplus · Accepted Answer

Shareholder primacy, the belief that a corporation should prioritize maximizing shareholder value above all else, is not always legally mandated. While it is a popular approach to corporate governance, courts and lawmakers have recognized that there are times when a company's other stakeholders (such as employees or the community) must be prioritized. Therefore, shareholder primacy is only legally mandated in very narrow circumstances, such as when a company is facing bankruptcy or must make a decision that directly affects the value of its shareholders' investments.

Which of the Following Is True Regarding Shareholder Primacy