Which of the Following Is Not an Advantage of ROI

question 119

Multiple Choice

Which of the following is not an advantage of ROI?

• A) It encourages managers of departments with high ROIs to invest in average ROI projects.
• B) It encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
• C) It encourages cost efficiency.
• D) It discourages excessive investment in operating assets.

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Definitions:

Commensalism

Commensalism is a type of symbiotic relationship between two living organisms where one benefits without harming or benefiting the other.

Interspecific Competition

A biological interaction between organisms of different species competing for the same resources in an ecosystem, such as food or space.

Foraging

The act of searching for and exploiting food resources in the wild, often used in the context of animals but also applicable to human gathering activities.

Commensalism

A relationship between two living organisms where one benefits and the other is neither harmed nor benefits significantly.