Which of the Following Activities Does NOT Reflect Short Termism

question 71

Multiple Choice

Which of the following activities does NOT reflect short termism?

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

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Definitions:

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.

Supply Curve

A graphical representation used in economics to show the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply at various prices.

Movement

A change or shift in position, location, or state, either physically, socially, economically, or politically.