Question

In 200 words, evaluate the importance of management time horizon and its effect on value maximization.

Answer 1

There is always an importance of the management time horizon because the time horizon for undertaking of a project, or undertaking of other investment decisions will be very important in achievement of the objectives of the company, because there would always be a preference of the management to achieve the desired objective within the stipulated period of time.

So, Time based horizon will always be important because it will be helpful for the management of an organisation in achievement of the objective within the specified period of time and that will help the organisation in attainment of the goals and objective of the organisation and that will help in maximization of the overall value of the firm.

Such companies will always be motivating the employees to attend their objective within the prescribed time, because it will be helpful for the employees because they will be getting through bonuses and performance related incentives.

So, it can be summarised that the time horizon for projects undertaken by management will have a direct influence on the value maximization prospect of the organisation.