Which of the following is a possible result of focusing excessively on short-term growth?

Prepare for the SACE Stage 2 Economics exam with a comprehensive quiz. Study through flashcards and multiple-choice questions, each featuring hints and explanations for thorough understanding. Get ready for your exam!

Focusing excessively on short-term growth often leads organizations to prioritize immediate financial performance over long-term strategic goals. This short-term mindset can result in decisions that sacrifice sustainability practices, employee welfare, and investments in innovation, ultimately jeopardizing the long-term health of the business. For instance, a company may cut research and development budgets or fail to invest in environmentally-friendly practices to boost quarterly profits, which can harm its reputation and viability in the long run.

In contrast, enhanced brand recognition, increased stakeholder engagement, and stronger financial reserves can typically result from a balanced approach that considers both short-term gains and long-term objectives, making them less likely outcomes of an excessive focus on short-term growth. Recognizing the importance of a sustainable approach helps ensure that businesses not only thrive in the present but are also well-positioned for future challenges and opportunities.

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