Which of the following are potential reasons why TRS over short periods of time may not reflect the actual performance of a company and its management?
I.A well-performing company may not deliver a high TRS if the expectations include knowledge of the performance.
II.When TRS is analyzed in its traditional way,it does not show the degree to which improvements in operations produced or increased the TRS.
III.Outside factors such as changing interest rates can affect TRS and be unrelated to the firm's operations.
IV.TRS is difficult to calculate for short periods of time.
A)II and IV.
B)I and II.
C)II and III.
D)I,II,and III.

Question

Quizplus · Accepted Answer

I, II, and III are correct because they highlight how external expectations, the inability of TRS to directly reflect operational improvements, and external economic factors can impact TRS, making it not always a reliable indicator of a company's performance or management effectiveness in the short term. IV is not a reason affecting TRS's reflection of performance but rather a practical challenge in its calculation.

Which of the Following Are Potential Reasons Why TRS Over