Is there a good argument against giving long-term shareholders more say in running a corporation? Briefly explain. A. Giving long-term shareholders more influence would give the board of directors too much power. B. Long-term shareholders may place more emphasis on costs rather than generating revenue. OC. Giving long-term shareholders more say could limit the ability of other investors to discipline corporate managers who fail to use profit-maximizing strategies. D. It could be argued that giving long-term shareholders more say could attract too many outside investors.
Is there a good argument against giving long-term shareholders more say in running a corporation? Briefly explain. A. Giving long-term shareholders more influence would give the board of directors too much power. B. Long-term shareholders may place more emphasis on costs rather than generating revenue. OC. Giving long-term shareholders more say could limit the ability of other investors to discipline corporate managers who fail to use profit-maximizing strategies. D. It could be argued that giving long-term shareholders more say could attract too many outside investors.
Chapter1: The Role And Objective Of Financial Management
Section: Chapter Questions
Problem 5QTD
Related questions
Question
Is there a good argument against giving long-term shareholders more say in running a corporation? Briefly explain. A. Giving long-term shareholders more influence would give the board of directors too much power. B. Long-term shareholders may place more emphasis on costs rather than generating revenue. OC. Giving long-term shareholders more say could limit the ability of other investors to discipline corporate managers who fail to use profit-maximizing strategies. D. It could be argued that giving long-term shareholders more say could attract too many outside investors.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage