A Limitation of ROI as a Measure of Performance Is

question 102

Multiple Choice

A limitation of ROI as a measure of performance is that

• A) it is a single comprehensive figure examining only one facet of the firm.
• B) it provides disincentive to use existing assets efficiently.
• C) it provides an incentive to acquire new assets.
• D) it is very sensitive to depreciation policy.
• E) it does not provide the basis for common comparison.

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Definitions:

Gas

A state of matter characterized by neither a fixed shape nor a fixed volume and can expand freely to fill any space available.

Peptic

Pertaining to digestion; can also refer to an ulcer of the upper digestive tract.

Gastric Ulcer

A sore or lesion that develops on the lining of the stomach, often resulting from infection with H. pylori bacteria or prolonged use of NSAIDs.

Stomach Ulcer

A sore that develops on the lining of the stomach or the small intestine, often caused by infection with H. pylori bacteria or prolonged use of NSAIDs.