Why Should Long-Run Objectives Take Precedence Over Short-Run Objectives

question 29

Multiple Choice

Why should long-run objectives take precedence over short-run objectives?

• A) The focus is placed on improving performance in the near term.
• B) Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.
• C) Long-run objectives will satisfy shareholder expectations for progress.
• D) Long-run objectives will force the company to deliver performance improvement in the current period.
• E) Long-run objectives will keep the company in line with its balanced scorecard.

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Definitions:

AASB3

An Australian Accounting Standard (AASB 3) that specifies the accounting requirements for business combinations, including how to account for goodwill and acquired identifiable assets and liabilities.

Business Combinations

Transactions or events through which one entity gains control over one or more businesses, involving mergers, acquisitions, or consolidations.

Common Control

A situation where several entities are governed by a single entity or group, allowing for coordinated strategies and policies.

Business Combination

An event in which multiple entities combine to form a single entity, typically to enhance competitive positioning and operational efficiency.