Why Is Return on Investment (ROI)the Most Commonly Used Financial

question 20

Multiple Choice

Why is return on investment (ROI) the most commonly used financial performance measure?

• A)It predicts whether profits will cover fixed costs.
• B)It helps monitors the level of debt an organization is carrying in order to maintain a good credit rating.
• C)It shows whether organizations can pay creditors without selling assets.
• D)It measures how efficiently managers are turning inventory over.
• E)It allows managers of one organization to compare performance with that of other organizations in its industry.

---

Definitions:

Clear and Present Danger

A doctrine used to determine under what circumstances limits can be placed on First Amendment freedoms of speech, press, or assembly.

Political Speech

Expressions related to the government, its policies, or political activities, which are highly protected under the First Amendment in the U.S.

Suppress

To put an end to the activities of a person, body of persons, etc.

Emotional Distress

A legal term for a psychological response, including anxiety, depression, or trauma, resulting from an experience or situation, often leading to potential compensation in lawsuits.