A Primary Limitation of Return on Investment (ROI) as a Performance

question 142

Multiple Choice

A primary limitation of return on investment (ROI) as a performance evaluation metric for investment centers is that ROI:

• A) Is a long-term, not short-term, performance indicator.
• B) Understates the level of investment for organizations operating in the so-called knowledge-based economy.
• C) Excludes the level of investment from the performance metric.
• D) Cannot handle current-value estimates of assets.
• E) Is not a relative performance indicator.

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Definitions:

Adolescence

Adolescence is a developmental stage that marks the transition from childhood to adulthood, characterized by significant physical, psychological, and social changes.

Deficits

Deficits refer to the amount by which something, especially a sum of money, is too small.

Fluent

Describes the ability to express oneself easily and articulately, often used in the context of speaking or writing a language.

Second Language

The language learned by an individual after acquiring their first language, also known as a foreign language in non-native settings.