Why Should Long-Run Objectives Take Precedence Over Short-Run Objectives

question 4

Multiple Choice

Why should long-run objectives take precedence over short-run objectives?

• A) Focus is placed on improving performance in the near term.
• B) Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.
• C) This will satisfy shareholder expectations for progress.
• D) This will force the company to deliver performance improvement in the current period.
• E) None of these.

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Definitions:

Continuous Random Variable

A variable capable of assuming any value out of countless possibilities within a specific interval.

Continuous Random Variable

A type of random variable that can take an infinite number of possible values in a continuous range.

Discrete Random Variable

A variable that can take on a finite or countably infinite set of values, each with a measurable probability.

Density Function

A mathematical function that describes the probability distribution of a continuous random variable.