Short Term View or Long Term View?
After reading the first two chapters of your textbook, evaluate
the following statement: Managers should not focus on the current
stock value because doing so will lead to overemphasis on
short-term profits at the expense of long-term profits. In your
post, explain what is meant by this statement. Describe how
management might decide whether to focus on short term or long term
goals and how that decision impacts the organization. Next, using
the financial balance sheet as displayed in the text, compute an
example of how focusing on short term profits can be detrimental to
long term profits. Share your opinion regarding whether you feel
it’s a better option to focus on short term or long term goals. Use
evidence from the text or external sources to support your
position. Your post should be 200-250 words in length.
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