Final answer:
Relying solely on financial measures can lead to misrepresentation of long-term progress, manipulation of outcomes, and neglect of non-financial factors like employee and environmental well-being, potentially resulting in a short-term focus and unethical behavior.
Step-by-step explanation:
Disadvantages of Relying Solely on Financial Measures
Some disadvantages of relying solely on financial measures include potential misrepresentation of long-term developments, issues of manipulation, and overlooking non-financial factors. Sole reliance on financial measures can downplay the importance of non-monetary aspects such as employee satisfaction, environmental impact, and social responsibility. Additionally, a short-term focus on financials might encourage unethical behavior to meet targets or manipulate financial outcomes. Moreover, financial indicators are historical by nature and may not accurately predict future viability and success of a business or entity.