A Financial Manager's Goal of Maximizing Current or Short-Term Earnings

Multiple Choice

A financial manager's goal of maximizing current or short-term earnings may not be appropriate because

A) it fails to consider the timing when shareholders want increased earnings and may instead consider the manager's own goals.
B) increased earnings may be accompanied by unacceptably higher levels of risk.
C) earnings are subjective; they can be defined in various ways such as accounting or economic earnings.
D) All of the options are true.