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

question 63

Multiple Choice

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

• A) it considers the timing of the benefits.
• B) increased earnings may be accompanied by acceptably higher levels of risk.
• C) share ownership is widely dispersed.
• D) earnings are subjective; they can be defined in various ways such as accounting or economic earnings.

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Definitions:

Adverbs

Words that modify verbs, adjectives, or other adverbs, typically expressing manner, place, time, frequency, degree, level of certainty, etc.

Concise

Expressing or covering much in few words; brief in form but comprehensive in scope.

Self-contained

Describes something that is complete within itself and does not require external assistance or resources.

Parallel Construction

The use of successive verbal constructions in poetry or prose that correspond in grammatical structure, sound, meter, meaning, etc.