Which of the Following Is a Shortcoming of ROI as a Performance

question 194

Multiple Choice

Which of the following is a shortcoming of ROI as a performance measure?

• A)ROI can increase without any change in operations because of depreciation.
• B)It can encourage some undesirable behavior by managers.
• C)Both ROI can increase without any change in operations because of depreciation and it can encourage some undesirable behavior by managers.
• D)Neither ROI can increase without any change in operations because of depreciation nor it can encourage some undesirable behavior by managers.

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Definitions:

Best Possible Alternative

A decision-making strategy that aims to identify the most optimal choice available among various options.

Probability of Success

The likelihood or chance that a particular action, endeavor, or initiative will achieve its intended outcome.

Decision-Making Process

The cognitive process leading to the selection of a course of action among variations.

Objective

A specific, measurable, and achievable target or goal that an individual or organization aims to accomplish.