Long term value creation (LTVC) requires moving from maximizing financial value to integrated value. Obstacles are the overreliance on market metrics and complex investment chains.

Question

BlackTom AI · Accepted Answer

The statement to evaluate is: Long term value creation (LTVC) requires moving from maximizing financial value to integrated value. Obstacles are the overreliance on market metrics and complex investment chains.

Option 1: True. The claim aligns with a common perspective in LTVC frameworks, which emphasize shifting from a sole focus on short-term financial metrics to a broader, integrated value approach that considers multiple stakeholders and long-term impacts. The mentioned obstacles—overreliance on market metrics and complex investment chains—are frequently cited as barriers to LTVC because market metrics can incentivize short-termism and complex chains can obscure true value creation, making it harder to align investments with sustainable, holistic outcomes. This reasoning supports the idea that LTVC involves reorienting metrics and governance to reflect broader value rather than purely financial return.

Option 2: False. If one were to select this, the argument would need to claim that LTVC does not require shifting focus or that so-called obstacles are not valid barriers. A counterpoint might argue that financial value maximization can coexist with integrated value or that market metrics, despite their flaws, still capture essential performance signals, or that investment chains are manageable with proper oversight. However, these counterclaims conflict with widely discussed LTVC principles that call for broader value considerations and acknowledge the identified obstacles as real impediments to achieving long-term, integrated value.

In summary, evaluating the statement involves recognizing that LTVC advocates a paradigm shift away from solely financial optimization toward a broader value system, and that reliance on market metrics and the complexity of investment chains are commonly cited hindrances to realizing that shift. The contrast between the two options hinges on whether one accepts this LTVC view and the highlighted obstacles as accurate descriptors.

25847 Sustainable Finance - Spring 2025 Quiz 2: Topic 2 - Investing in the long term value creation

Long term value creation (LTVC) requires moving from maximizing financial value to integrated value. Obstacles are the overreliance on market metrics and complex investment chains.

查看解析

登录即可查看完整答案

类似问题

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

The break-even point is that at which:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单