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Short-Term Vs. Long-Term Profits

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, 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.

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Managers should not focus on current stock value; instead emphasize on long-term profits. It is usual tendency of organizations to deliver short-term profits for their shareholders without realizing that risks which organizations are taking for it could cause more harm in the future. The short-term view is detrimental to the purpose for which organizations are in existence. Any company has plan ...

Solution Summary

The expert examines short-term versus long-term profits.