On Earnings Associated with New Products of a Firm,it Is

question 41

Multiple Choice

On earnings associated with new products of a firm,it is critical that the:

• A)firm's management has the pressure of steady improvement in earnings per share.
• B)firm does not become solely preoccupied with a short-term focus.
• C)firm does not focus on the ultimate economic contribution.
• D)firm realizes that profitability will not be supported by the stock market in terms of higher share prices over the long term.

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Definitions:

Non-Operating Sources

Revenue or income that arises from activities not related to a company’s core business operations.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or discontinued.

FVTPL

The acronym stands for Fair Value Through Profit or Loss; this designation refers to financial assets or liabilities that are recorded at fair value, with any changes directly affecting profit or loss.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.