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:

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns, independent of acquired knowledge.

Reason

The capacity for consciously making sense of things, applying logic, and establishing and verifying facts.

Correlations

Statistical measures that describe the extent to which two variables change together, indicating a relationship or association between them.

"g" Factor

A construct used in the field of psychology to denote the underlying general intelligence factor that contributes to performance on various cognitive tasks.