BY Abitur WuR GA Practice Questions - Bavaria Abitur Wirtschaft Und Recht (grundlegendes Anforderungsniveau) Exam

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The management of a profitable GmbH decides to distribute the entire annual profit to the shareholders and to cancel a planned modernisation of its machinery. Which problem of entrepreneurial goal-setting does this decision primarily illustrate?

A violation of a statutory duty to reinvest all profits Neglect of long-term goal orientation in favour of short-term distribution interests A conflict between ecological and social objectives The necessary prioritisation of liquidity over profitability

Correct Answer:

Neglect of long-term goal orientation in favour of short-term distribution interests

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