Short-Termism Is Defined as

question 115

Multiple Choice

Short-termism is defined as

• A)making assessments of the moral character of a company's managers.
• B)the tendency for managers to focus on immediate performance objectives at the expense of longer-term strategic objectives.
• C)assessing the costs and damages to the company's reputation as a result of ethical violations.
• D)weighing the short-term costs of regulatory compliance with the long-term costs of noncompliance.
• E)assessing the short-term costs of complying with government regulations.

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Definitions:

Double Declining-balance

An accelerated method of depreciation where the book value of an asset is reduced at double the rate of its straight-line depreciation each year.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting the use and wear and tear of the asset.

Units-of-production

A method of depreciation that assigns an asset's cost based on its usage, activities, or output, instead of the passage of time.

Depreciation Expense

Depreciation Expense denotes the allocation of an asset's cost over its useful life, reflecting the asset's consumption or decline in value.