Question

Chang, the founder of a multinational corporation, believes that his business should mainly focus on the benefit of those people who own its stock. In this scenario, he most likely follows _____, a model of business management.
A. stakeholder model
B. shareholder primacy
C. customer value
D. stakeholder value

Answer 1

Answer:

Letter b is correct. Shareholder primacy.

Explanation:

Shareholder primacy is a corporate governance situation where organizations design their policies to reduce employee expenses and benefits and stakeholder interests to maximize shareholder profitability. One benefit of this practice is the clearer measurement and evaluation of organizational performance, which is measured by the amount of wealth that shareholders have.