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Business Studies

Arguments for Social Responsibility

Maximizing sh...

Question

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be.

A

True

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B

False

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Solution

The correct option is A True
Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be- this is a true statement. Maximizing the number of shareholders should be the purpose of a company.

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