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Why is it important that managers pursue strategies that maximize returns for stockholders? Stockholders are owners of the company. Stockholders expect a specific return level
Why is it important that managers pursue strategies that maximize returns for stockholders? Stockholders are owners of the company. Stockholders expect a specific return level on their risk capital. Stockholders supply the firm with credit needed to run the operation. Stockholders are protected by government regulations. How does a positive ROIC increase the value of a share of stock in a company? by growing the profits of the company over time by emphasizing strategy for further profitability by eliminating debt by adding profit to shareholder's equity Why is the pursuit of a strategy that maximizes long-term profitability and profit growth consistent with satisfying claims of employees as stakeholders? The firm can keep unions out of the organization. The firm can better meet debt commitments. The firm can pay higher than industry standards and win employee loyalty. The firm can pay higher salaries and provide better benefits. Why did the PRI group feel responsible investment and sustainable value creation was important? It would create expansion and sustainability in developing economies. It would benefit the environment and society as a whole. It would lower prices and increase consumer bases. It would provide a rapid influx of cash into a struggling industry
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