On earnings associated with new products of a firm, it is critical that the:
A) firm's management body 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

While earning steady profits is important for any company, becoming solely focused on short-term gains can lead to neglecting long-term growth and sustainability. Therefore, it is critical that the firm does not become solely preoccupied with a short-term focus when it comes to earnings associated with new products.

On Earnings Associated with New Products of a Firm, It