Which of the Following Is a Disadvantage of Measuring Firm

question 60

Multiple Choice

Which of the following is a disadvantage of measuring firm performance through total return to shareholders and firm market capitalization?

• A) Market volatility makes it difficult to assess firm performance through these measures, particularly in the short-term.
• B) These tools fail to indicate how the stock market views all available public information about a firm's expected future performance.
• C) These tools measure competitive advantage in absolute terms rather than relative terms.
• D) Only the book value of the share prices is taken into account when applying these measures, and not the market value.

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Definitions:

Managing Conflict

The process of identifying and addressing differences that, if left unchecked, could affect project performance.

Forming Stage

The initial phase of team development where members are brought together, get to know each other, and start to understand the team's goals.

Team Development

The process of enhancing the effectiveness of work groups through improving goal setting, roles, interpersonal relationships, and problem-solving strategies.

Storming Stage

The phase in group development where members experience conflicts and competition, as individual personalities and differences emerge.