Question

A typical company has many types of​ shareholders, from individuals holding a few​ shares, to large institutions that hold very large numbers of shares. How does a financial manager ensure that the priorities and concerns of such disparate stockholders are​ met? A. In​ general, all shareholders will agree that they are better off if the financial manager works to maximize the value of their investment. B. The financial manager should seek to make investments that do not harm the interests of the stockholders. C. The decisions taken by the financial manager should be solely influenced by the benefit to the company​ since, by maximizing its​ fitness, he or she will also maximize the benefits of that company to the shareholders. D. The financial manager should consider the interests and concerns of large shareholders a priority so the needs of those who hold a controlling interest in the company are met.

Answer 1

Answer:

The correct option here is A) .

Explanation:

It is widely accepted that the main objective of a company is to maximize the value of company by maximizing the wealth of shareholders, which is represented through market price of company's shares ( stocks ) . Company's all around the world have made this their primary objective because if a company is not able to increase its value then its shareholders would think that the risk associated with the company has increased and it will lead them to take their investment out of company, so it is very important that a company's management ( or manager ) works in such way that shareholders wealth is maximized.