Evaluate the following statement: (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.)
Explain 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, using the financial balance sheet compute an example 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 external sources to support your position.
