why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

1 answer:

5 0

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.

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According to path-goal theory, _____ are similar to initiating structure and include setting goals, showing subordinates how to

Oduvanchick [21]

Answer:

directive behaviors

Explanation:

Path-goal theory is a theory developed on the concept of leadership.

It believes that when the leader that is the management follows a directive behavior that is it straight away provides guidance about the responsibility of the job, the nature of work to be done and the method of doing such job, then it automatically creates a aim and objective of the work done.

Directive behavior influences lower management about the technique of doing job early and that the work is done in the manner defined.

This itself aims at descriptive in nature, along with being directive.

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A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 19%, while stock B has a standard

tangare [24]

Correlation coefficent = 0.5356

<u>Explanation:</u>

Portfolio variance = (Standard of stock A * Weightage of stock A)2 + (Standard of stock B * Weightage of stock B)2 + 2 * (Standard of stock A * Weightage of stock A) * (Standard of stock B * Weightage of stock B) * Correlation coefficent.

$0.034=(19 \% * 0.70)^{2}+(25 \% * 0.30)^{2}+2 * 19 \% * 0.70 * 25 \% * 0.30 *$ Correlation coefficent

By calculating the above equation, we get,

=> Correlation coefficent = 0.5356

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3 years ago

If a country is having more exports than imports in value terms, it can be said that the country is having:-

galina1969 [7]

Surplus under BOP (C).

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The discounted cash inflows of a project minus the discounted cash outflows is referred to as the _____.

Ira Lisetskai [31]

<span>The answer is net present value. It is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to examine the effectiveness of a projected investment or project. A net present value that is positive stipulates that the projected earnings produced by a project or investment surpasses the anticipated costs. In general, an investment with a positive NPV will be a profitable one and the one with a negative NPV will result in a net loss. </span>

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A 1996 bill reforming the federal government’s antipoverty programs limited many welfare recipients to only two years of benefit

irina1246 [14]

a. Incentive to work increase

b. This change increase efficiency but decrease equality

Explanation:

a. Reduction of welfare benefits period increasing employment opportunities. Job prospects are diminished now (profit).

b. This bill reform would reduce the distortion created by the benefit program (disincentive to work) and thus improve efficiency.

At the same time, though, the move will reduce the Program's effect on poverty reduction and indirectly on social inequality.

The reform can therefore represent a balance between productivity and equity.

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3 years ago