Which of the Following Is True of Myopic Behavior

question 32

Multiple Choice

Which of the following is true of myopic behavior?

• A) Increased spending on research and development is a possible example of myopic behavior.
• B) Budgetary measures alone can prevent myopic behavior.
• C) Short-term nonfinancial measures contain myopic behavior.
• D) It occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm to the firm.
• E) Buying cheaper materials of the same quality to decrease the amount spent on raw materials results in myopic behavior.

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Definitions:

Commercial Security Division

A branch within a corporation focused on providing security services and solutions to businesses and commercial properties.

Valve Division

A specific segment or department within a company that focuses on the manufacturing and sale of valves; this term could also relate to an organizational unit in a business.

Idle Capacity

The unused portion of a company's production or service capacity, where resources are available but not being fully utilized.

Potential Profit

The projected or anticipated profit from a business activity or investment, considering current or expected conditions.