Podcast
Questions and Answers
What is the primary goal for a company according to the concept of shareholder value?
What is the primary goal for a company according to the concept of shareholder value?
- Maximizing revenue generation
- Minimizing operational costs
- Increasing the wealth of its shareholders (correct)
- Expanding market reach
What does the term 'shareholder value' refer to?
What does the term 'shareholder value' refer to?
- Operational efficiency of a company
- Market capitalization of a company (correct)
- Employee satisfaction within a company
- Total revenue generated by a company
According to the concept of shareholder value, what should planned actions by management and the returns to shareholders do?
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 (correct)
- Satisfy all stakeholder expectations
- Minimize the cost of capital
- Meet certain benchmarks such as employee satisfaction
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?
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?
What principle became prominent during the 1980s and 1990s along with the concept of shareholder value?
What principle became prominent during the 1980s and 1990s along with the concept of shareholder value?
According to the concept of shareholder value, what is the primary goal for a company?
According to the concept of shareholder value, what is the primary goal for a company?
What does the term 'shareholder value' refer to?
What does the term 'shareholder value' refer to?
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?
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?
What principle became prominent along with the concept of shareholder value during the 1980s and 1990s?
What principle became prominent along with the concept of shareholder value during the 1980s and 1990s?
In essence, according to the concept of shareholder value, what should planned actions by management and the returns to shareholders do?
In essence, according to the concept of shareholder value, what should planned actions by management and the returns to shareholders do?
