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Firm Performance Has Traditionally Been Measured in Purely Financial Terms

Question 25

Multiple Choice

Firm performance has traditionally been measured in purely financial terms such as shareholder returns.What are some of the weaknesses associated with this approach?


A) They are hard to calculate
B) They encourage executives to focus on short-term profits
C) They reflect only current performance,with no expectations about the future
D) There is no link between the measures and the capital provided to the firm
E) None of these

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