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:

Recovery

The process of returning to a normal state of health, mind, or strength after experiencing damage or illness.

Exercise

Physical activities undertaken to maintain or enhance health and fitness, including aerobic, strength, flexibility, and balance exercises.

Stress

The body's reaction to any change that requires an adjustment or response, which can be physical, mental, or emotional.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, dilating bronchial passages, and decreasing motility of the large intestine.