What Disadvantage Is There in Using ROI And/or RI as Performance

question 149

Multiple Choice

What disadvantage is there in using ROI and/or RI as performance measures?

• A)A manager's bonus will decrease when ROI decreases.
• B)ROI may decrease when business expands if income does not increase in line with the new investment.
• C)RI and ROI are both single-period measures.
• D)RI is measured in absolute dollars but ROI is in percentages.
• E)Imputed costs that are deducted in the RI calculation, are not recognized in accrual accounting, and are therefore not included in the operating figure used in calculating ROI.

Identify and explain the legal effects of warranties and defenses in the context of negotiable instruments.

Describe the implications of alterations, forgery, and unauthorized signatures on negotiable instruments.

Determine the liability of parties involved in the issuance, transfer, and dishonor of negotiable instruments.

Understand the concepts of holder in due course (HDC) and the protections afforded to HDCs.

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Definitions:

Consciousness

The state of being awake and aware of one’s surroundings and thoughts.

Psychological Conflicts

Internal struggles resulting from opposing desires, impulses, or demands, which can lead to stress or psychological discomfort.

Psychoanalysis

A method of psychological therapy and analysis of the mind, founded by Sigmund Freud, focusing on unconscious processes.

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Content or stimuli that induces feelings of fear, worry, or unease in an individual.