Asked by Nikki Cantrell on Mar 10, 2024
Verified
Value creation is a central focus for managers and only refers to shareholder value.
Value Creation
Value Creation involves processes or activities that increase the worth of a product or service, enhancing its value to consumers and leading to competitive advantage.
Shareholder Value
The financial worth delivered to shareholders of a corporation due to management's ability to increase earnings, dividends, and share price.
- Grasp the concept of value creation beyond shareholder value to include broader business impacts.
Verified Answer
ED
Elise DanaherMar 10, 2024
Final Answer :
False
Explanation :
Value creation is a central focus for managers, but it encompasses all stakeholders, including shareholders, employees, customers, and the community. A company's success is not solely determined by shareholder value, but by its ability to create value for all parties involved.
Learning Objectives
- Grasp the concept of value creation beyond shareholder value to include broader business impacts.
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