On earnings associated with new products of a firm,it is critical that the:
A)firm's management has the pressure of steady improvement in earnings per share.
B)firm does not become solely preoccupied with a short-term focus.
C)firm does not focus on the ultimate economic contribution.
D)firm realizes that profitability will not be supported by the stock market in terms of higher share prices over the long term.

Question

Quizplus · Accepted Answer

Focusing solely on short-term earnings from new products can lead to neglecting long-term investments and strategies that could lead to sustained growth and profitability. It is important for firms to strike a balance between short-term and long-term focus to ensure sustained success.

On Earnings Associated with New Products of a Firm,it Is