Managing for Long-Run Profits Implies That a Company

question 196

Multiple Choice

Managing for long-run profits implies that a company

• A) will give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• B) will maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
• C) all profits will be invested in bonds or other certificates of deposit in order to counteract any drastic economic changes in the future.
• D) all profits will be reinvested into market research or product research rather than returned to shareholders.
• E) all products, product lines, or divisions that cannot maintain their pricing goals will be dropped.

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Definitions:

Individual Differences

Refers to the distinct variations among people in their abilities, personalities, learning styles, and other characteristics.

Social Support

The assistance and comfort received from friends, family, and others, which is considered an important factor in dealing with stress and adversity.

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The capacity to perform cognitive tasks and solve problems.

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