Which of the Following Is a Disadvantage of ROI

question 9

Multiple Choice

Which of the following is a disadvantage of ROI?

• A)It discourages managers from investing in projects that would decrease their ROI.
• B)It discourages managers from paying careful attention to the relationships among sales,expenses,and investment.
• C)It discourages cost efficiency.
• D)It discourages excessive investment in operating assets.

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Definitions:

Norman Triplett

A psychologist known for his work on the social facilitation effect, showcasing how the presence of others affects performance.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Corporations

Are legal entities established to conduct business, capable of entering into contracts, suing and being sued, and owning assets separate from their members or shareholders.

Deindividuation

A psychological state characterized by lowered self-awareness and decreased concern for social evaluation, often leading to uncharacteristic behavior within a group setting.