Question 2 In the context of corporate finance, which of the following statements is most likely to be false? A Sound financial management is necessary for the achievement of stakeholder goals B Survival may be a key short-term objective for a firm, especially in times of economic recession, but it cannot be a satisfactory long-term objective Shareholder wealth is maximised through managers making sound investment and financing (including dividend) decisions D Shareholders do not always act in the best interests of their managers, giving rise to the principal-agent problem E Agency costs are likely to be higher when there exists more asymmetry of information between managers and shareholders