ROI Used to Evaluate the Performance of an Investment Center

question 60

Multiple Choice

ROI used to evaluate the performance of an investment center manager can sometimes lead to suboptimization.A performance measure designed to avoid the risk of suboptimization is:

• A)operating income.
• B)residual income.
• C)segment income.
• D)the DuPont model.

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Definitions:

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Temporal Orientation

An individual's or culture's attitudes and perceptions regarding time, emphasizing past, present, or future.

Industrialized Countries

Nations that have undergone substantial industrial development, characterized by significant manufacturing, advanced technological infrastructure, and higher standards of living.

Self-awareness

The ability to introspect and recognize one's own emotional state, thought processes, and sense of identity.