Which of the Following Is Not a Reason for Evaluating

question 24

Multiple Choice

Which of the following is not a reason for evaluating subunits over a multi-year time horizon?

• A) Benefits of actions taken in the current period may not show up in a short-term performance measure.
• B) Managers may curtail R & D or plant maintenance in order to increase short-term results.
• C) Investments may actually decrease ROI and or RI in the short-term.
• D) The NPV of the cash flows over the life of an investment equals [total assets ÷ ROI].
• E) Investments may actually decrease ROI and or RI in the short-term, and benefits of actions taken in the current period may not show up in a short-term performance measure.

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Definitions:

Positive Emotion

Feelings or emotions that evoke a sense of well-being, happiness, or contentment in an individual.

Negative Emotion

Feelings or emotions that are unpleasant or undesirable, such as sadness, anger, fear, or jealousy, which can impact an individual's mental and physical well-being.

Personological Approach

An approach in psychology that focuses on the study of an individual's character and life experiences in understanding their personality.

Lexical Approach

A method in personality psychology focusing on the analysis of language and words used to describe human traits and behavior.