A financial manager's goal of maximizing current or short-term earnings may not be appropriate because
A)it fails to consider the timing of the benefits.
B)increased earnings may be accompanied by unacceptably higher levels of risk.
C)earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
D)All of the options

Question

Quizplus · Accepted Answer

All of the options are reasons why a financial manager's goal of maximizing current or short-term earnings may not be appropriate. Considering only current or short-term earnings may ignore the timing of the benefits and the potential for increased risk. Additionally, earnings can be defined in various ways, making it difficult to evaluate the true impact of the financial manager's decisions. Therefore, it is important to consider a broader range of factors, such as long-term growth, sustainability, and risk management.

A Financial Manager's Goal of Maximizing Current or Short-Term Earnings