Satisfying the needs of shareholders instead of other

17) Satisfying the needs of shareholders, instead of other stakeholders, must be paramount to a
business because
A) This objective is always consistent with those of other stakeholders
B) Government will put pressure on a business to do so
C) Other stakeholders do not have an impact on the success of the business
D) Shareholders will always ensure that the needs of other stakeholders will be met
E) If the management team does not pursue this goal, they will be replaced
Answer: E
Diff: 2 Type: MC Page Ref: 8
Skill: Applied
Question Type: Qualitative
18) A mission statement reflects a company's
B
Diff: 1 Type: MC Page Ref: 8-9
Skill: Recall
Question Type: Qualitative
19) A mission statement often includes
A
Diff: 1 Type: MC Page Ref: 11
Skill: Recall
Question Type: Qualitative
20) Pressure to increase returns to shareholders has

B) Grown due to the relative ease of moving funds to any opportunity in the world
C) Not changed in the past decade
D) Decreased because of the stability of the North American economy
E) Decreased in response to availability of better information through technology
Answer: B
Diff: 2 Type: MC Page Ref: 9
Skill: Applied
Question Type: Quantitative
21) Wealth maximization is consistent with ethical behavior because
A) Managers tend to focus on long-term results not immediate performance
B) All unethical behavior by managers is known and ethical shareholders will not hold shares in
their companies
C) Any unethical behavior always results in legal proceedings against the company
D) Low wages and poor working conditions do not produce quality, innovative products
E) In the short term, ethical behavior is always more cost-effective than unethical behavior
Answer: