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Which of the Following Is an Issue Pointed Out by Critics

Question 14

Multiple Choice

Which of the following is an issue pointed out by critics of the shareholder primacy school as evidence against this model?


A) The absence of a financial capital makes it hard to hire employees, buy inventory or other needed inputs, and produce products for customers to buy.
B) Managers make difficult trade-offs to satisfy one shareholder group at the expense of others.
C) Corporations that run for other stakeholder groups often cause real damage to economies, communities, and the natural environment.
D) Shareholders actually own their corporation.

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