Which One of the Following Is Not a Limitation Shared

question 127

Multiple Choice

Which one of the following is not a limitation shared by residual income (RI) and return on investment (ROI) divisional performance measures?

• A) They are both short-term performance indicators.
• B) They both may fail to capture significant value-creating activities of the organization.
• C) They are both subject to short-term manipulation on the part of divisional managers.
• D) Both are subject to a number of measurement issues that complicate their use in practice.
• E) They both relate, in percentage terms, earnings to the level of investment in each division.

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Definitions:

Myelin Sheaths

Protective coverings around nerve fibers that facilitate the rapid transmission of neural signals.

Synaptic Vesicles

Small sacs within a neuron that store neurotransmitters, which are chemicals released to communicate with adjoining neurons at a synapse.

Dopamine System

A neural system involved in reward, motivation, and the regulation of mood, whose key neurotransmitter is dopamine.

Parkinson's Disease

A progressive neurological disorder characterized by motor symptoms such as tremors, stiffness, slowness of movement, and postural instability.