A financial manager's goal of maximizing current or short-term earnings may not be appropriate because
A) it fails to consider the timing of the benefits.
B) increased earnings may be accompanied by unacceptably higher levels of risk.
C) earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
D) all of these.

Question

Quizplus · Accepted Answer

All three options are valid reasons why a financial manager's goal of maximizing current or short-term earnings may not be appropriate. Focusing solely on short-term earnings without considering the timing of their benefits or accompanying levels of risk may not be sustainable or beneficial for the long-term success of the company. Additionally, earnings can be defined in various ways and may not accurately reflect the overall financial health or success of the organization.

A Financial Manager's Goal of Maximizing Current or Short-Term Earnings