Which of the Following Is a Limitation in Using Profitability

question 16

Multiple Choice

Which of the following is a limitation in using profitability as the sole measure of performance?

• A)Profit is linked to diminishing returns to scale and is a misrepresentation of true performance.
• B)Profit is a short-term measure and can be manipulated by taking actions that may prove dysfunctional in the longer term.
• C)Profit produces externalities,which invariably have a negative effect on the environment.
• D)Profits cannot account for the network effects that are generated by multiple users in diverse locations.

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Definitions:

Skeletal

Pertaining to the framework of bones that supports the body, allows for movement, and protects the internal organs.

Smooth

Describes muscle tissue that lacks striations, is involuntarily controlled, and found in the walls of internal organs.

Cardiac

Relating to the heart, especially pertaining to its function or diseases affecting it.

Ciliated Cells

Cells that have hair-like structures (cilia) on their surface, which often function to move fluids over the cell surface or to move the cell itself.