1) According to the course materials, which one of the following goals should an ethical manager...
1)
According to the course materials, which one of the following goals should an ethical manager (who adheres to all relevant laws and regulations) pursue?
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Maximizing firm value |
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Maximizing firm growth |
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Maximizing firm market share |
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Maximizing firm profits 2) Is the following assertion true or false? Agency costs exist for many corporations, at least in part, because there is a separation between owners and managers.
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Homework Answers
The goal that an ethical manager should pursue is
Maximising firm value
Profits growth and market share, all are important but what the investors look for in the long run is the firm value and hence the ethical manager should focus on increasing that
2. True
Agency cost exists because of presence of principal agent relationship between owners and managers.
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According to the
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