Which of the Following Is a Shortcoming of ROI as a Performance

question 173

Multiple Choice

Which of the following is a shortcoming of ROI as a performance measure?

• A)ROI can increase without any change in operations because of depreciation.
• B)It can encourage desirable behavior by managers.
• C)ROI can increase without any change in operations by acquiring more capital assets.
• D)It can encourage managers to increase sales revenue.

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Definitions:

Core Self-evaluation

A personality trait which encompasses an individual's subconscious, fundamental evaluations about themselves, their capabilities, and their worth.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance, commitment, and overall well-being.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and sadness.

Developmental Model

A framework used to describe or understand the evolution or growth of objects, systems, or individuals.