What Is the Main Failing of Examining Earnings Per Share

question 22

Multiple Choice

What is the main failing of examining earnings per share growth as an indicator of success?

• A) It does not take account of the investment needed and risk taken to generate that growth.
• B) It inevitably leads to long- termism.
• C) It ignores the levels of cash flow and profit.
• D) It exaggerates the importance of the investment needed to generate that growth.

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Definitions:

Vision

A statement or idea about the future direction of an organization or individual, representing aspirations and goals to be achieved.

Service Offerings

The various services that a company provides to its customers, which can include consulting, maintenance, and customer support.

Pathos

An appeal to emotion in rhetoric or creative works, aiming to elicit an emotional response from the audience.

Business Model

A plan or framework a company uses to operate, generate revenues, and make a profit, detailing how it conducts business.