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Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

In your post, describe what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, Compute an ex of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long term goals. Use evidence from the text or external sources to support your position.

 

Basic Finance, Finance

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