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Chapter 7. Culture of Greed: Sports Stad... > Red Flag 3: A Company Cuts Research ...

Red Flag 3: A Company Cuts Research and Other Spending for the Future

Whenever there are signs of tough times ahead, if a company’s first move is to slash its spending on research and development or other initiatives meant to improve its longer-term prospects, you may be dealing with a shortsighted management team. This is particularly the case if the cuts are the way the company gets to meet earnings growth targets.


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