Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.

The aim of financial management is the maximization of shareholder's wealth. Shareholder's wealth takes into consideration dividend payments and capital appreciation to the shareholders.

The concept of stakeholders take into account shareholders, customers, suppliers, employees and workers of an organization and is thus a wider concept.

Focusing merely upon current stock value i.e current market value is short sightedness from the point of managers. Managers should rather focus upon long term implications of the projects and financing decisions.

More attention should be assigned to the long term performance and efficiency of a firm with respect to dividend and investment decisions which cast a long term bearing on the operations and performance of a firm.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; windows embedded;