Which of the Following Statements About Return on Investment (ROI)is

question 96

Multiple Choice

Which of the following statements about return on investment (ROI) is false?

• A) ROI equals margin divided by investment turnover.
• B) ROI is used to measure the performance of investment centers.
• C) Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole.
• D) Companies may minimize motivational problems by using original cost instead of book value in the denominator of the ROI formula.

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Definitions:

High Status Groups

Social groups regarded as having superior prestige, authority, or wealth in a given society.

Power Concentration

The scenario in which a disproportionate amount of power or authority is held by a small number of individuals or organizations.

Elite Theory

Holds that small groups occupying the command posts of America’s most influential institutions make the important decisions that profoundly affect all members of society. Moreover, they do so without much regard for elections or public opinion.

High-Status Groups

High-status groups refer to social groups that are considered superior within a society due to certain attributes like wealth, power, or prestige.