Which three of the following are disadvantages to the use of shareholder value analysis?
A) It cannot set both short- term and long- term targets.
B) Constant percentage increases in value drivers lack realism in some circumstances.
C) It can be misused in target setting.
D) Many firms' accounting systems are not equipped to provide the necessary input data.

Question

Quizplus · Accepted Answer

B) Constant percentage increases in value drivers may not always be realistic, as business conditions and market environments can change, making such increases difficult to achieve consistently. C) Shareholder value analysis can be misused in target setting, potentially leading to unrealistic or overly aggressive targets that may not be in the best long-term interest of the company. D) Many firms' accounting systems may not be designed to easily provide the detailed and specific input data required for effective shareholder value analysis, making it challenging to implement and maintain.

Which Three of the Following Are Disadvantages to the Use