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Part A: Theory Questions (30%) Question 1 (10%) Please provide comments and short answers to the following statements. a. Companies are now more aware
Part A: Theory Questions (30%) Question 1 (10%) Please provide comments and short answers to the following statements. a. Companies are now more aware of the environmental and social impacts that resulted from their operations and start to consider these factors into their decision- making process, in addition to the traditional financial considerations. In your opinion, does such practice support or contradict the goal of the firm to maximize shareholder value? Justify your answer. (5 marks) b. Since it is assumed that human being will try to maximize their wealth, then the interests of both the company's shareholders and management will always be in line and goal congruence can easily be achieved. (5 marks)
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