Compute an example of how focusing on short term profits

Assignment Help Finance Basics

Reference no: EM13329294

Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, using the financial balance sheet as displayed in the text, compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long term goals. Use evidence from the text or external sources to support your position. Your post should be 200-250 words in length.

Reference no: EM13329294

Questions Cloud

Find the average force exerted on the ball by the golf club : A golf ball of mass 0.045 kg is hit off the tee at a speed of 36m/s . The golf club was in contact with the ball for 3.90×10?3s. Find the average force exerted on the ball by the golf club

How much faster could you pay the loan off by making plan : All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 19.8 percent, to a new credit card charging a rate of 10.4 percent.

Determine the velocity of the puck after the collision : A 0.300-kg puck, initially at rest on a horizontal, frictionless surface, Determine the velocity of the 0.300-kg puck after the collision

What can you say about total revenue and the total revenue : Suppose that over a range of prices, the price elasticity of demand varies from 15.0 to 2.5. Over another range of prices, the price elasticity of demand varies from 1.5 to 0.75. What can you say about total revenue and the total revenue curve over t..

Compute an example of how focusing on short term profits : Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, using the financial balance sheet as displayed in the text

Determine the induced emf in the small loop : A single circular loop of wire is placed inside a long solenoid with its plane perpendicular to the axis of the solenoid. What is the induced emf in the small loop

What was the price index in 2003 : The price level of a basket of goods in 2002 was $64.00. The price level of that same basket in 2003 was $68.00. If 2002 is the base year, what was the price index in 2003?

Complete your portfolio project assignment : Complete your Portfolio Project assignment, focusing on making sure that you have all of the necessary components as set forth in the rubric. Spend time making sure that the formatting meets SEU APA standards, and thoroughly proofread and grammar-che..

A watch manufacture finds that at 1,000 units of output : A watch manufacture finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total cost rise, fall, or stay the same.

User Account

All Pages