FSOT Full Test Bank

Category - Management

What can stockholders reasonably expect of company managers?
  1. That they add value to the stockholders’ investment
  2. That they diversify the stockholders’ portfolio
  3. That they maximize short-term yields for the stockholders
  4. That they minimize the stockholders' overall exposure
Explanation
Answer: A - Stockholders can reasonably expect company managers to add value to their investment. Issues of portfolio management are not within the responsibilities of corporate management.
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