Question

Why must non-financial companies now put short-term shareholder value well above other business goals and strategies?

Answer 1

Explanation:

There are four fundamental ways to generate greater shareholder value:

Increase unit price. Increasing the price of your product, assuming that you continue to sell the same amount, or more, will generate more profit and

wealth.

Sell more units.

Increase fixed cost utilization.

Decrease unit cost.