Short-Termism Is NOT Likely to Be an Impetus for Company

question 69

Multiple Choice

Short-termism is NOT likely to be an impetus for company managers to

• A)decrease spending on research and development
• B)avoid stock repurchases made to increase earnings-per-share of a company
• C)maintain and hire critical employees with compensations tied to annual company earnings
• D)take into consideration all tangible future cash flows over intangible brand value appreciation
• E)carry business operations with existing technologies in all markets to cut costs and increase profits

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Definitions:

Quantity Demanded

A specific quantity of a good that buyers are interested in purchasing at a certain price point.

Law of Demand

The principle that, ceteris paribus, there is an inverse relationship between the price of a good and the quantity demanded.

Quantity Demanded

The amount of a product or service consumers are willing to buy at a given price.

Demand Curve

A graphical representation showing how the quantity of a good or service demanded by consumers changes at different price levels.