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

question 13

Multiple Choice

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

• A) it fails to consider the timing when shareholders want increased earnings and may instead consider the manager's own goals.
• B) increased earnings may be accompanied by unacceptably higher levels of risk.
• C) earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
• D) All of the options are true.

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Definitions:

Artistic Endeavours

Creative activities or projects that involve art, such as painting, writing, or performing.

Self-discrepancy Theory

A psychological model proposing that individuals compare their actual self to internalized standards or desired self-concepts, leading to emotional discomfort when discrepancies exist.

True Self

The authentic core of a person's identity, reflecting their genuine thoughts, feelings, and desires.

Ideal Self

Ideal self refers to the person that an individual aspires to be, encompassing their goals, values, and aspirations.