An Advantage of ROI as a Measure of Performance Is

question 111

Multiple Choice

An advantage of ROI as a measure of performance is that

• A) it is sensitive to book value.
• B) it provides an incentive to use existing assets efficiently.
• C) the time span of concern is short range.
• D) the business cycle strongly affects ROI performance often despite managerial performance.
• E) it is very sensitive to depreciation policy.

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Definitions:

Communication Structure

The organization and arrangement of components within a communication system, determining how information is transmitted and received.

Executive Members

Individuals who are part of a group's leadership, responsible for making decisions and governing the organization.

Constitution

The system of fundamental principles according to which a nation, state, corporation, or the like, is governed.

Communication Structure

The organized pattern or framework that dictates how information is exchanged and processed within a group or system.