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Section A
Paula, the CEO of a small consulting firm, told her subordinates that the company is only interested in making money for the shareholders since they are the ones who "put their money on the line". When asked about the company's plan to consider the other stakeholders when making decisions, Paula mentioned that they will not be thinking of them anytime soon.
1. Explain whether the company is following the Shareholder Model or the Stakeholder Model. Discuss answer in details
2. Explain any 4 of the direct stakeholders of a company.
Be sure to mention and discuss why they are critical to the success of a company.
3. Explain in details the history of the purpose of a corporation.
Section B
Do you think that corporate leaders should be responsible only for profit- maximization? Yes or No. or should they have obligations to people who are not shareholders. Explain your answer and reason.
Please use shareholders theory and stakeholders theory to support your opinion.
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The context of businessplanning related decision-making.
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