Chapter 1, Problem 3CQ

Summary Introduction

To evaluate the statement:

The managers must not concentrate on the present stock value because doing so will lead to an over emphasis on short-term profits at the expenses of long-term profits.

Introduction:

Any profits that arise during a course of time, that is, less than twelve months, are considered short-term profits or gains. Any profits that arise during a course, that is, more than 12 months, are considered long-term profits or gains.