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What is considered to be one of the biggest weaknesses of WEP?
Liability Account
An accounting record that represents an entity's obligations to pay debts owed to other entities in the future.
Horizon Problems
Challenges faced by management in making decisions that benefit short-term performance at the expense of long-term gains, often influenced by the tenure of managers or external pressures.
Dividend Retention
The strategy of reinvesting company profits instead of distributing them to shareholders as dividends to fuel future growth.
Risk Aversion
The preference to avoid uncertainty, with individuals or entities preferring more predictable outcomes over less predictable ones.
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