A-LevelEconomicsMicroeconomics: Firm Objectives & BehaviourMay/June 2018Paper 3 Q131 Mark
What would not be an indication of a divergence between the interests of the managers and the shareholders of a company? A an emphasis on sales maximisation B management salaries which are linked to the long-run growth of the company's share price C the acceptance of 'X' inefficiency in the company's production process D the purchase of artwork for a company's headquarters
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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