Question: 1 ) Choose the statement that is TRUE concerning the financial manager of a corporation. A ) Compensating financial managers with stock or stock -
Choose the statement that is TRUE concerning the financial
manager of a corporation.
A Compensating financial managers with stock or stocklinked
securities induces them to act in shareholders' interests.
B The goal of the financial manager should be to maximize earnings
per share.
C Compensating financial managers with cash salaries and cash
bonuses induce them to act in shareholders' interests.
D The goal of the financial manager should be to maximize revenues.
E If financial managers maximize shareholder wealth, then the
corporation's employees and the environment would necessarily be
exploited and harmed.
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