Question
A typical public company has many types of shareholders, from individuals holding a few shares, to large institutions that hold very large numbers of shares.
A typical "public" 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 shareholders are met?
(a) the decisions taken by the financial manager should be solely influenced by the revenue to the company since, by maximising its fitness, he or she will also maximise the benefits of that company to the shareholders.
(b) the financial manager should seek to make investments that do not harm the interests of the shareholders.
(c) the financial managers 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
(d) in general, all shareholders will agree that they are better off if the financial manager works to maximise the value of their investment
(e) the financial manager should only consider the interests of minority shareholders
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