Because Financial Ratios Usually Are Expressed in Compressed Time Horizons

question 43

True/False

Because financial ratios usually are expressed in compressed time horizons, they often cause management myopia.

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Definitions:

Deviance

Deviance refers to behaviors, thoughts, or actions that fall outside of social norms and are typically subject to negative sanction.

Distress

Emotional suffering or pain caused by stress, adversity, or other negative experiences.

Dysfunction

An impairment or abnormality in the functioning of a system or organ.

Danger

The possibility of suffering harm or injury; a situation or action that can lead to a harmful or hazardous outcome.