Asked by William Daymon on Mar 10, 2024
Verified
Under a shareholder model, managers' primary obligation is to act in the best interests of:
A) Themselves
B) The shareholders or owners
C) Society
D) Customers
Managers' Primary Obligation
The fundamental responsibility of managers to ensure the survival and success of the organization by making effective decisions.
Best Interests
A principle guiding actions or decisions made with the well-being or favorable outcome for a party or concerned individuals as the primary concern.
- Familiarize yourself with the basic ideas governing shareholder and stakeholder approaches to corporate governance.
Verified Answer
AG
Amber GilliamMar 10, 2024
Final Answer :
B
Explanation :
The shareholder model holds that managers have a primary obligation to act in the best interests of the shareholders or owners of the company. This means that decisions should be made with the goal of maximizing returns for shareholders, rather than prioritizing other stakeholders such as society or customers.
Learning Objectives
- Familiarize yourself with the basic ideas governing shareholder and stakeholder approaches to corporate governance.
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