Raj, a Student of Business Management, Claims That the Shareholder

Multiple Choice

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management. Which of the following statements should he use in order to best support his claim?

A) The shareholders are not the legal owners of the corporation's assets.
B) Financial capital is the most important input into making a business successful.
C) The shareholders cannot not trade or own any stock of the corporation.
D) Managing for shareholder value creates negative consequences for firms.