CFA Practice Question

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CFA Practice Question

Which statement is true?

I. In general, managers should favor profit growth over current profitability.

II. In general, a company can always satisfy the claims of all stakeholders if it chooses to do so.
Correct Answer: Both statements are false.

I: They cannot have too much emphasis on either. They should strive to find the right balance.

II: The goals of different stakeholders often conflict.

User Contributed Comments 2

User Comment
ewantanner Tricky Tricky
Rasikh "Profit is important for survival, while growth is essential for long term success". They feed on each other.
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