Concept explainers
To critically think about: Whether the goal of maximizing the firm’s stock value conflict with other goals, like avoiding illegal or unethical behavior.
Introduction:
The
To critically think about: Whether the environment, employee and customer safety, and the general good of the society fit in this framework or they are ignored. Illustrate with a specific scenario.
Introduction:
The financial managers make decision for the sake of the shareholders, which must be in the legal and ethical environments. If the shareholders want to buy the shares, then it is beneficial and a good decision, which increases the value of the stock. However, poor or unethical decisions will reduce the value of the stocks.
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