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:

Investment Center

A business segment within a company for which the manager has control and responsibility over cost, revenue, and investments.

Target Income

The specific amount of net income that a company aims to achieve for a certain period.

Investment Turnover

Investment turnover measures how efficiently a company generates sales from its investment in fixed assets.

Profit Margin

The percentage of revenue remaining after all expenses, taxes, and costs have been deducted from total sales.