- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 2. Investors and Other Stakeholders
- Subject 2. Corporate Stakeholders and Governance
CFA Practice Question
Which statement is true?
I. In general, managers should favor profit growth over current profitability.
II. In general, a company can always satisfy the claims of all stakeholders if it chooses to do so.
Correct Answer: Both statements are false.
I: They cannot have too much emphasis on either. They should strive to find the right balance.
II: The goals of different stakeholders often conflict.
User Contributed Comments 2
User | Comment |
---|---|
ewantanner | Tricky Tricky |
Rasikh | "Profit is important for survival, while growth is essential for long term success". They feed on each other. |