Maximizing Profit as the Manager's Goal Has Several Flaws,including

question 33

Multiple Choice

Maximizing profit as the manager's goal has several flaws,including:

• A) Earnings figures focus on past performance rather than current or future performance
• B) The timing of the profits may be ignored
• C) Focusing on earnings does not mean that the firm will necessarily have enough cash on hand to pay its bills
• D) Risk is ignored
• E) All of the above

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Definitions:

Behavioral Contrast

A phenomenon where a change in conditions results in an opposite change in behavior, often observed in operant conditioning experiments.

Habituation

A decrease in response to a stimulus after repeated presentations, indicating a form of learning that involves becoming accustomed to the stimulus.

Sensitization

An increase in behavioral response after exposure to a stimulus.

Higher-order Conditioning

A form of conditioning in which a stimulus is paired with a previously conditioned stimulus, leading to the acquisition of the same conditioned response without being directly paired with the unconditioned stimulus.