Which of the Following Statements About Return on Investment (ROI)

question 124

Multiple Choice

Which of the following statements about return on investment (ROI) is false?

• A) ROI equals margin divided by investment turnover.
• B) ROI is used to measure the performance of investment centers.
• C) Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole.
• D) Most companies use operating assets and operating income to compute ROI.

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Definitions:

Center Tapped Transformer

A transformer with a connection point (tap) in the middle of the secondary winding, which allows for splitting the output voltage into two parts, each half of the full voltage.

Voltage

An electrical measurement that represents the difference in electric potential energy between two points in a circuit.

Ladies Association

Women's groups, often historical, dedicated to philanthropy, social reform, or supporting a particular cause or community need through volunteerism and fundraising.

Esther Reed

An American Revolutionary War figure known for organizing women to provide support for soldiers, highlighting the role of women in the war effort.