All of the Following Statements Are True About Return on Investment

question 38

Multiple Choice

All of the following statements are true about return on investment (ROI) except:

• A)Breaking out ROI into two ratios provides information that helps division managers identify areas for improvement.
• B)ROI can be improved by decreasing the operating profit margin.
• C)ROI can be calculated using the gross book value method.
• D)ROI can be improved by increasing asset turnover.
• E)None of the answer choices is correct.

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Definitions:

Positive self-illusion

The tendency of individuals to view themselves more positively than may be objectively justified.

Medically abnormal

A condition or state that deviates from what is considered healthy or normal in medical practice.

Maladaptive

Refers to actions or behaviors that inhibit an individual's ability to adjust healthily to particular situations.

Deviant

Behaving or thought patterns that differ significantly from the norm or societal expectations, often carrying a negative connotation.