Which of the Following Is an Example of Myopic Behavior

question 138

Multiple Choice

Which of the following is an example of myopic behavior?

• A) Promotion of deserving employees.
• B) Reducing expenditures on preventive maintenance.
• C) Increased spending on research and development.
• D) Productivity training for new employees.
• E) Buying cheaper materials of the same quality to decrease the amount spent on raw materials.

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Definitions:

Gain on Sale

The profit realized when an asset is sold for a price higher than its book value.

Indirect Method

A cash flow statement methodology that adjusts net income for changes in non-cash transactions and working capital to calculate cash flow from operating activities.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period.

Operating Activities

These activities involve the primary, day-to-day operations of a business, such as selling products, providing services, and incurring operating costs.