Question
A typical company has many types of shareholders ranging from individuals who hold just a few shares to large institutions that hold a considerable number
A typical company has many types of shareholders ranging from individuals who hold just a few shares to large institutions that hold a considerable number of shares. How does a financial manager ensure that the priorities and concerns of such a wide variety of shareholders are taken into account?
a.
The financial manager should maximise the value of all shareholders investments.
b.
The financial manager should make the interests and concerns of large shareholders a priority so that the needs of those who hold a controlling interest in the company are met.
c.
The financial manager should seek to make investments that do not harm the interests of shareholders.
d.
The decisions taken by the financial manager should be influenced solely by their benefits to the company since, by maximising the benefits to the company, he/she will also maximise the benefits of the companys shareholders.
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