Which of the Following Is Not a Disadvantage of the ROI

question 49

Multiple Choice

Which of the following is not a disadvantage of the ROI performance measure?

• A) It encourages managers to focus on the long run rather than the short run.
• B) It discourages managers from investing in projects that would decrease divisional ROI but increase the profitability of the company as a whole.
• C) It encourages myopic behavior.
• D) All of these are disadvantages of the ROI measure.

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Definitions:

Pupil

The adjustable opening in the center of the eye that allows light to enter and reach the retina, varying in size to regulate the amount of light intake.

Lens

A piece of transparent substance, usually glass or plastic, that refracts or focuses light rays, used in optical devices like glasses or cameras.

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the nervous system.

Receptor Cells

Specialized cells that respond to specific kinds of energy, such as light, sound, or chemicals, and convert them into neural signals.