Return on Investment Cannot Be Used Effectively to Evaluate Profit

question 58

True/False

Return on investment cannot be used effectively to evaluate profit centres because it motivates managers to make suboptimal decisions from the viewpoint of the organisations' owners.

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Definitions:

Loss of Balance

A condition where an individual struggles to maintain their body's equilibrium, which can result in unsteadiness or falling.

Blurred Vision

A lack of sharpness in seeing, resulting in the inability to see fine details.

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