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

question 96

Multiple Choice

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

• 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:

Curiosity

A strong desire to learn or know something, characterized by inquisitiveness and exploration.

Brightly Colored Objects

Items or materials that exhibit vivid colors and attract attention due to their visual appeal.

Unassigned Books

Texts that have not been selected for reading or study within a particular academic curriculum or program.

Falsifiable

The ability of a hypothesis or theory to be proven false by evidence or experimentation.