3.7.3 Analysing the existing internal position of a business to assess strengths and weaknesses: overall performance Flashcards
1
Q
Problems with relying solely on financial performance measures?
A
𝐁𝐚𝐜𝐤𝐰𝐚𝐫𝐝 𝐥𝐨𝐨𝐤𝐢𝐧𝐠- shows what happened in the past,not future
𝐒𝐡𝐨𝐫𝐭 𝐭𝐞𝐫𝐦𝐢𝐬𝐦- looking at data may encourage a firm to maximize profits short term which could be detrimental to the long term success of the business.
