Which of the Following Statements Concerning Profitability and Profit Growth

question 16

Multiple Choice

Which of the following statements concerning profitability and profit growth is NOT true?

• A) Attaining future profit growth may require investments that reduce the current rate of profitability.
• B) Managers must find the right balance between profitability and profit growth.
• C) Too much emphasis on current profitability at the expense of profit growth can make an enterprise less attractive to shareholders.
• D) Satisfying the claims of other key stakeholder groups happens at the risk of decreased profitability and profit growth.
• E) Too much emphasis on profit growth can reduce profitability and make an enterprise less attractive to shareholders.

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Definitions:

Taijinkyofusho

A Japanese culture-specific syndrome characterized by an intense fear that one's body, body parts, or bodily functions are displeasing, embarrassing, or offensive to other people.

Deference

The act of submitting to the wishes, judgment, or opinion of another person out of respect or reverence.

Embarrassing Oneself

The act of causing oneself to feel awkward, self-conscious, or ashamed in public or social situations.

Social Anxiety Disorder

A chronic mental health condition characterized by overwhelming anxiety and self-consciousness in everyday social situations.