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question 9
the selfishness of managers in order to ensure that sharehe employees benefit most from the firms success. Question 9 (2 poi
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Answer #1

Answer - D (sacrifices short term losses for long term benefits)

Explanation :

Factors to be considered when for a business decision:

  • Impact of investors' interest on business will have business decision.
  • A good business decisin cannot satisfy all the stakeholders at a time. Stakeholders include all parties having interest on business such as creditors, debtors, financial partners, employees, owners, government, etc.
  • Also, we cannot say firm's owners will have wealthy returns from a good business because owners are entitled to recieve compensation on their capital investment by way of dividend only.
  • When a business is good, its employees will be benefited through additional compensations like bonuses, etc., obviously but it doesn't mean that it is so always.

Based on above facts option D is the right answer

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