Which One of the Following Is NOT One of the Reasons

question 4

Multiple Choice

Which one of the following is NOT one of the reasons why many executives do not conduct long-run performance evaluations while preferring to focus primarily on short-run performances?

• A)They do not realize the importance of long-run evaluations.
• B)They are not personally evaluated on a long-term basis.
• C)They believe short-run considerations are more important than long-run considerations.
• D)They do not have the time to make a long-run analysis.
• E)They do not believe in strategic planning.

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Definitions:

High-frequency Traders

Investors who use powerful computers to execute large numbers of trades at very fast speeds, often attempting to exploit small price differences.

Market Liquidity

The extent to which a market allows assets to be bought and sold quickly without causing a significant change in their price.

Seasoned Equity Offering

The process where a company that has securities traded in a public market issues additional shares to the public.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that have been issued and are currently held by investors, including restricted shares owned by the company's insiders.