Podcast
Questions and Answers
The interests of community groups affected by a company's operations are most likely to be considered in corporate governance under:
The interests of community groups affected by a company's operations are most likely to be considered in corporate governance under:
- shareholder theory.
- special interest theory.
- stakeholder theory. (correct)
The stakeholder theory of corporate governance is primarily focused on:
The stakeholder theory of corporate governance is primarily focused on:
- resolving the competing interests of those who manage companies and other groups affected by a company's actions. (correct)
- increasing the value a company.
- the interests of various stakeholders rather than the interests of shareholders.
Increasing a company's risk exposure in an effort to increase its growth rate is most likely to be favored by:
Increasing a company's risk exposure in an effort to increase its growth rate is most likely to be favored by:
- owners but not lenders. (correct)
- neither lenders nor owners.
- both lenders and owners.
The stakeholder group that typically prefers the greatest amount of business risk is:
The stakeholder group that typically prefers the greatest amount of business risk is:
Under shareholder theory, corporate governance is most concerned with managing conflicts of interest between the firm's managers and its:
Under shareholder theory, corporate governance is most concerned with managing conflicts of interest between the firm's managers and its:
The stakeholders of a company that are least likely to prefer a relatively riskier company strategy that has the potential for superior company performance are:
The stakeholders of a company that are least likely to prefer a relatively riskier company strategy that has the potential for superior company performance are:
Which of the following payments are contractual obligations of a corporation?
Which of the following payments are contractual obligations of a corporation?
Flashcards
Stakeholder Theory
Stakeholder Theory
Corporate governance that considers the interests of all groups affected by a company's actions.
Stakeholder Theory Focus
Stakeholder Theory Focus
Resolves conflicting interests of shareholders and other stakeholders.
Who favors risk?
Who favors risk?
Owners, due to potentially unlimited upside from company growth.
Greatest Business Risk
Greatest Business Risk
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Shareholder Theory Focus
Shareholder Theory Focus
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Least Likely to Prefer Risk
Least Likely to Prefer Risk
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Contractual Obligations
Contractual Obligations
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Study Notes
- Community groups' interests are most likely considered under stakeholder theory in corporate governance.
- Stakeholder theory of corporate governance focuses on resolving the competing interests of company managers and other affected groups.
- Owners are more likely to favor increasing a company's risk exposure to increase its growth rate.
- Shareholders typically prefer the greatest amount of business risk.
- Corporate governance under shareholder theory primarily manages conflicts of interest between managers and owners.
- Creditors are the stakeholders least likely to prefer a riskier company strategy for superior performance.
- Interest and principal payments are contractual obligations of a corporation.
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