Managers Should Do More Than Focus on Short-Term Financial Performance

question 44

Multiple Choice

Managers should do more than focus on short-term financial performance.One concept that helps managers do this is stakeholder symbiosis.This means that

• A) stakeholders are dependent on each other for their success.
• B) stakeholders look out for their individual interests.
• C) one can only gain at the expense of someone else.
• D) all stakeholders want to maximize shareholder returns.

---

Definitions:

Market Demand

The aggregate amount of a product or service that every consumer in a market is prepared and capable of buying at different price levels.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the market to stabilize at a point where supply equals demand.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical.

Short Run

A period of time in economics during which at least one input is fixed and cannot be changed by businesses.