Which One of the Following Is Not a Limitation Shared

question 5

Multiple Choice

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

• 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 managers.
• D)Both are subject to a number of measurement issues that complicate their use in practice.
• E)They both relate earnings to the level of investment.

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Definitions:

Vendor Hosts

Providers or businesses that offer services or space on their servers for clients or customers to use for their websites or software.

Network

A connecting system (wireline or wireless) that enables multiple computers to share resources.

ASP

Stands for Application Service Provider, a business providing computer-based services to customers over a network, such as access to a particular software application using a standard protocol.

ERP

Enterprise Resource Planning, an integrated management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions.