If Managers Are Evaluated Using Return on Investment, They Are

question 112

True/False

If managers are evaluated using return on investment, they are often over aggressive of accepting new investments because the investment will provide an increase in net income.

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Definitions:

Intellectual Assets

Intangible resources of a company, including patents, trademarks, business models, and the expertise of employees, that contribute to its competitive advantage.

Knowledge

Information, understanding, or skill that one gains through education or experience.

Informal Systems

Unofficial ways of operating within an organization that arise from personal interactions, cultures, and norms outside formal structures.

Informational Power

Power derived from possessing knowledge or information that is needed or wanted by others.