Why Is Return on Investment (ROI) the Most Commonly Used

question 80

Multiple Choice

Why is return on investment (ROI) the most commonly used financial performance measure?

• A)It measures how far profits can decline before managers cannot meet interest changes.
• B)It measures how efficiently managers are collecting revenues from customers to pay expenses.
• C)It shows whether organizations can pay claims of short-term creditors without selling inventory.
• D)It measures how efficiently managers are turning inventory over.
• E)It allows managers of one organization to compare performance with that of other organizations.

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Definitions:

Big Five

The five basic dimensions of personality found in many factor analytic studies.

Factor Analysis

A statistical approach that explains the variance among observed, correlated variables through fewer, unseen variables known as factors.

Personality Structure

The organization and dynamic interplay of core aspects of personality, including traits, motives, and self-concepts.

Personality Traits

Enduring characteristics that describe an individual's behavior, mindset, and emotional patterns.