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:

Competitive People

Individuals who have a strong desire to win or be the best in their field, often driving them to put in significant effort and perseverance.

Personal Gains

Benefits or advantages gained by an individual, often from a situation or through their actions, which can be material or immaterial.

Encouraging Behavior

Actions intended to support, motivate, or promote confidence in individuals or groups.

Challenger

An entity or individual that questions, competes against, or provides alternatives to the current status quo or dominant players.