Question 1.A.2: How might the managers of a business increase short-term pro...

The managers may reduce operating expenses, and so increase short-term profits, by:
\bullet cutting research and development expenditure
\bullet cutting staff training and development
\bullet buying lower quality materials
\bullet cutting quality control mechanisms.
Whilst these policies may all have a beneficial effect on short-term profits, they may
undermine the long-term competitiveness and performance of a business.