Question:
What does it mean to say that managers should maximize shareholders' wealth "subject to ethical constraints"? What ethical considerations might factor into decisions that result in lower cash flow and stock price effects than they might have otherwise been valued?
Business Ethics:
Business ethics are a set of standards that provide guidelines for businesses to conduct themselves and their transactions in a morally acceptable way. They enhance the law because they outline acceptable behaviors beyond the control of governments.
Answer and Explanation:
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Maximizing shareholders' wealth subject to ethical constraints means that managers should strive to make maximum company profits while maintaining a...
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