Which of These Is a Reason Why Achieving the Maximum

question 49

Multiple Choice

Which of these is a reason why achieving the maximum possible profit in a particular year may not be in the best interests of a business?

• A)Concentrating on the short-term may have detrimental effects in the long-term.
• B)It may be achieved by causing environmental problems, which give the business a bad reputation.
• C)If it is achieved with high-risk strategies, such as excessive reliance on borrowings, it could lead to disaster in the longer term.
• D)All of the above.

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Definitions:

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization.

Contribute

To give or supply in common with others, adding to a greater whole.

Rewards

Benefits, compensation, or recognition given in response to someone’s behavior, effort, or achievement as a means of encouragement.

Incentives

Rewards or motivators provided to encourage specific actions or behaviors in individuals or groups.