Firm Performance Has Traditionally Been Measured in Purely Financial Terms

question 14

Multiple Choice

Firm performance has traditionally been measured in purely financial terms such as shareholder returns.What are some of the weaknesses associated with this approach?

• A)They are hard to calculate
• B)They encourage executives to focus on short-term profits
• C)They reflect only current performance,with no expectations about the future
• D)There is no link between the measures and the capital provided to the firm
• E)None of these

---

Definitions:

Labor Markets

The supply and demand dynamics of labor, where employers seek to hire workers and workers seek employment, influenced by factors like wages, skills, and economic conditions.

Employee Voice

The ways in which employees can express their opinions, concerns, and suggestions about their work and workplace conditions, often leading to improvements in job satisfaction and organizational performance.

Economic Efficiency

The optimal use of resources to achieve the best possible output or outcome with minimal waste or expense.

Unpleasant Work

Jobs or tasks that are considered physically or emotionally uncomfortable, distressing, or dangerous.