10 Questions
What is the primary goal for a company according to the concept of shareholder value?
Increasing the wealth of its shareholders
What does the term 'shareholder value' refer to?
Market capitalization of a company
According to the concept of shareholder value, what should planned actions by management and the returns to shareholders do?
Outperform certain benchmarks such as the cost of capital
Who introduced the specific concept that shareholders' money should be used to earn a higher return than they could earn themselves by investing in other assets of the same risk?
Alfred Rappaport
What principle became prominent during the 1980s and 1990s along with the concept of shareholder value?
Value-based management
According to the concept of shareholder value, what is the primary goal for a company?
Increasing the wealth of its shareholders by paying dividends and/or causing the stock price to increase
What does the term 'shareholder value' refer to?
Increasing the wealth of its shareholders by paying dividends and/or causing the stock price to increase
Who introduced the specific concept that shareholders' money should be used to earn a higher return than they could earn themselves by investing in other assets of the same risk?
Alfred Rappaport
What principle became prominent along with the concept of shareholder value during the 1980s and 1990s?
Value-based management
In essence, according to the concept of shareholder value, what should planned actions by management and the returns to shareholders do?
Outperform certain benchmarks such as the cost of capital concept
Test your knowledge of shareholder value and value-based management principles with this quiz. Explore the concept of shareholder value maximization and its impact on business strategies and decision-making.
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