Please evaluate the following statement: Managers should not focus on current stock value because it leads to an over-emphasis on short-term profits...

This is a
good statement to keep in mind, because stockholder value can fluctuate wildly, and you dont
want to harm your overall production capability by focusing too much on it. Now, conceptually,
it is far more complicated, because shareholder value and stock value can improve your operating
income and give you liquid capital with which to work.

Overall, however, the
job of managers is to keep their employees working and ensure long term profitability. Things
exterior to the production ability and work force can drastically alter the stock price;
examples include supply chain issues,...