Management Myopia Occurs When Managers

question 116

Multiple Choice

Management myopia occurs when managers

• A)lack motivation to reach their performance targets and in turn find it difficult to motivate subordinates.
• B)limit their focus to short-term profits at the expense of longer-term strategic obligations.
• C)find themselves unable to rise beyond a certain level in the organizational hierarchy.
• D)are promoted beyond their current level of competence, experience, or education.
• E)find it hard to progress within an organization due to corporate downsizing or paring of middle management layers.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Total Current Assets

The sum of all assets that a company expects to convert into cash, sell, or consume within one year or within the normal operating cycle of the business.

Current Liabilities

Obligations a company is expected to pay within a year, including accounts payable, short-term loans, and other short-term debts.

Common Size Income Statement

An income statement in which each line item is expressed as a percentage of sales, facilitating comparison across companies or periods regardless of size.