A firm can produce short-run profits at the expense of long-term profitability by
A) cutting back on new product planning expenditures.
B) having a blurred image.
C) introducing major new product innovations.
D) allocating more resources to the SBUs having the greatest opportunities.

Question

Quizplus · Accepted Answer

Cutting back on new product planning expenditures can lead to short-term profits as it reduces immediate costs. However, this strategy can harm long-term profitability by hindering the firm's ability to innovate and stay competitive.

A Firm Can Produce Short-Run Profits at the Expense of Long-Term