It has been argued that profit maximization is an unrealistic description of the organizational behavior of large, publicly-held corporations.

The modern corporation, so the argument goes, is too complex to admit to such a simple explanation of the managerial behavior. One alternative argument depicts the manager as an agent for the corporation’s shareholders. Managers, so the argument goes, exhibit “satisficing”

behavior in that they maximize something other than profit, such as market share or executive perquisites subject to the shareholders’

minimum acceptable return on investment. Do you believe that this assessment of managerial behavior is realistic? Do you believe that the above description of shareholder expectations is essentially correct?