Which of the following is a term for the maximization of shareholder value? a. Shareholder primacy...
Which of the following is a term for the maximization of shareholder value?
| a. |
Shareholder primacy |
|
| b. |
Corporate allocation |
|
| c. |
Shareholder importance |
|
| d. |
Value of shares maximization |
Homework Answers
Answer: option a; Shareholder primacy
Explanation:
Shareholder primacy is the concept which gives more importance to the shareholders as they are the owners of the company and it focuses on maximization of shareholder value before considering the interests of other stakeholders. Hence the answer is option a. Corporate allocation is used to manipulate existing ledger transactions to create new transactions and value of shares maximization increases the value of stock and maximizes the value of the firm. Shareholder importance refers to the importance of shareholders in the business and does not mean maximization of shareholder value. Hence these options are wrong.
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