Which of the Following Is NOT a Reason for Evaluating

question 4

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:

Liability

A legal obligation or responsibility to make restitution or compensation for harm or damage caused to another party.

Restatement Second Torts

A legal document summarizing the common law of torts in the United States, aimed at clarifying, modernizing, and otherwise improving the law.

Licensee

A licensee is an individual or entity that has been granted the right by a licensor to engage in certain activities or use certain property that belongs to the licensor.

Tort Law

The area of law that deals with civil wrongs and damages, allowing victims to receive compensation for harm caused by others' negligence or intentional actions.