A Limitation of ROI as a Measure of Performance Is

question 4

Multiple Choice

A limitation of ROI as a measure of performance is that

• A) it is a single comprehensive figure examining only one facet of the firm.
• B) it provides an disincentive to use existing assets efficiently.
• C) it provides a disincentive to acquire new assets.
• D) it can be computed only after profits are totaled for a period.
• E) it does not provide the basis for common comparison.

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Definitions:

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MPAA Rating

A classification system used in the United States by the Motion Picture Association of America to provide movie viewers with guidance on the suitability of films based on their content.

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A film rating by the Motion Picture Association indicating that some material may be inappropriate for children under 13.