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What are some potential conflicts between short-term and long-term financial objectives?

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The first thing we need to understand in order to answer this question is exactly what short-term and long-term financial objectives are. Examples of short-term goals could include paying a web designer to upgrade your company’s website, paying for a marketing campaign to advertise a product that you are selling or hiring a new employee to enable the team to take on more work and bring in new clients. Examples of long-term financial goals would be ensuring the long-term viability and liquidity of the company and ensuring maximum gains for shareholders.

A conflict between these goals could occur if shareholders were hesitant to pay for an upgrade to the company’s website, as this expense would eat into the company’s profits for that year. It is easy for shareholders to be shortsighted in this regard. However, not having a website that is user-friendly, secure, and responsive will mean that your website quickly becomes less trusted and less browsed than those of your up-to-date...

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