Which Three of the Following Are Disadvantages to the Use

question 19

Multiple Choice

Which three of the following are disadvantages to the use of shareholder value analysis?

• A) It cannot set both short- term and long- term targets.
• B) Constant percentage increases in value drivers lack realism in some circumstances.
• C) It can be misused in target setting.
• D) Many firms' accounting systems are not equipped to provide the necessary input data.

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Definitions:

Diffusion of Responsibility

The phenomenon where individuals feel diminished responsibility for their actions because others are seen as equally responsible.

Agreeableness

A personality trait characterized by warmth, kindness, and a willingness to cooperate and get along with others.

Diffusion of Responsibility

A psychological phenomenon in which individuals in a group are less likely to take action or feel responsible because the presence of others is seen to dilute personal responsibility.

Just World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an undeserved, bad outcome as deserved.