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:

Collective Identity

The shared sense of belonging to a group that influences one’s sense of self in relation to others within the same group.

Social Justice

An ideal condition in which all members of a society have the same basic rights, protection, opportunities, obligations, and social benefits.

Collective Learning

The process through which a group, organization, or society accumulates knowledge and skills from shared experiences over time.

Field Experiments

Research conducted in natural settings to investigate the applicability of theoretical findings to real-world situations.