Which of the Following Is a Disadvantage of a Focus

question 6

Multiple Choice

Which of the following is a disadvantage of a focus on return on investment?

• A) It can encourage managers to focus on cost cutting efforts.
• B) It can produce a narrow focus on divisional profitability at the expense of profitability for the overall firm.
• C) It can encourage managers to cut inventories and reduce overall investment.
• D) It can encourage managers to focus on the long run at the expense of the short run.
• E) It can accomplish all of these disadvantages.

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Definitions:

Cognition

Gaining awareness and understanding by engaging in thought, experiencing events, and through sensory detection.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.

Sympathetic Nervous System

A division of the autonomic nervous system that controls the body's responses to perceived threats by activating the fight-or-flight response.

Parasympathetic

The part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic system.