A Financial Manager's Goal of Maximizing Current or Short-Term Earnings

question 87

Multiple Choice

A financial manager's goal of maximizing current or short-term earnings may not be appropriate because

• A) it fails to consider the timing of the benefits.
• B) increased earnings may be accompanied by unacceptably higher levels of risk.
• C) earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
• D) all of the other answers are correct

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Definitions:

U.S. Sentencing Commission

An independent agency of the judicial branch of the U.S. government, responsible for establishing sentencing policies and practices for the federal courts.

Effective Compliance Program

A set of internal policies and procedures implemented by a company to ensure lawful and ethical conduct.

Oversight

The supervision or watchful management over activities or organizations to ensure adherence to laws, guidelines, and standards.

Gatekeepers

Individuals or entities that control access to information or resources, acting as intermediaries who can influence the flow of information or the decision-making process.