Question

Which of the following is inconsistent with long-term corporate value maximisation?

Question 1 options:

1)	A focus on overly generous short-term stock options

2)	A focus on long-term wealth maximisation

3)	The concept of patient capitalism

4)	The avoidance of deceptive and dishonest business practices.

5)	None of the given answers.

Answer 1

A. A focus on overly generous short-term stock options

Long term corporate value maximization focus on long term growth of the company rather than short term profit. so here over focus on overly generous short-term stock options are not in pace with long term value maximization. all other options ie, focus on wealth maximisation, patient capitalization and avoidance of deceptive and dishonest business practices will fetch the result of long-term value maximisation