Which of the Following Statements About Return on Investment (ROI)is

question 66

Multiple Choice

Which of the following statements about return on investment (ROI) is

• A) ROI equals margin divided by investment turnover.
• B) ROI is used to measure the performance of investment centers.
• C) Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole.
• D) Companies may minimize motivational problems by using original cost instead of book value in the denominator of the ROI formula.

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Definitions:

Sample

A subset of a population that is used for measurement and analysis, representing the larger group from which it is drawn.

Descriptive Statistics

The branch of statistics that deals with the collection, analysis, interpretation, and presentation of masses of numerical data.

Statistical Analyses

The process of applying statistical techniques to describe, explore, and infer relationships within data.

17th Century

The period in history spanning from 1601 to 1700, often noted for major developments in science, mathematics, and philosophy.