CFA Level I · CFA Level I Exam · Investors and Other Stakeholders
Compared with a shareholder-only view, the stakeholder management framework most likely places greater emphasis on:
The framework most likely emphasizes managing conflicts among groups with differing interests, such as shareholders, creditors, employees and customers. It does not prescribe maximizing dividends or eliminating debt, which are separate financial policy choices.
- Amanaging conflicts among groups with differing interests in the firm.Correct
- Bmaximizing dividends paid in every period.
- Celiminating all debt from the capital structure.
Explanation
Because many groups have different interests, the framework stresses identifying and managing conflicts among them. It does not require maximizing dividends or removing debt.
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