If a firm focuses on accounting rates of return, what is likely to be the result?
A) Increased long- term profit
B) Short- termism
C) High levels of risk
D) Long- termism

Question

Quizplus · Accepted Answer

Focusing on accounting rates of return often leads to a short-term view of the firm's performance as it prioritizes immediate profitability over long-term growth and sustainability. This can result in decision-making that sacrifices long-term benefits for short-term gains.

If a Firm Focuses on Accounting Rates of Return, What