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.

---

Definitions:

Oropharynx

A part of the pharynx situated between the soft palate and the epiglottis, involved in swallowing.

Nasopharynx

The upper part of the throat located behind the nose, which forms part of the respiratory system.

Laryngopharynx

The part of the pharynx that lies below the epiglottis and above the esophagus, involved in both respiration and digestion.

Trachea

The windpipe, a tube that connects the larynx to the bronchi of the lungs, allowing the passage of air.