Which One of the Following Statements Does NOT Describe a Problem

question 10

Multiple Choice

Which one of the following statements does NOT describe a problem with using ROE as a performance measure?

• A) ROE measures return on accounting book value,and this problem is not solved by using market value.
• B) ROE is a forward-looking,one-period measure,while business decisions span the past and present.
• C) ROE measures only return,while financial decisions involve balancing risk against return.
• D) None of these describe problems with ROE.
• E) All of these describe problems with ROE.

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Definitions:

Organizational Size

A measure of a company based on factors such as the number of employees, total sales, or market capitalization.

Spans Of Control

Refers to the number of subordinates directly supervised by a manager, affecting the complexity and effectiveness of management.

One Best Way

The belief that there is a single most effective method for performing a task or solving a problem.

Organize

To arrange or systematize elements into a structured whole or system.