Which of the Following Is NOT an Advantage of ROI

question 133

Multiple Choice

Which of the following is NOT an advantage of ROI?

• A)It encourages managers of departments with high ROIs to invest in average ROI projects.
• B)It encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
• C)It encourages cost efficiency.
• D)It discourages excessive investment in operating assets.

---

Definitions:

Economically Injurious Falsehood

A false statement made about a business or product that causes financial harm, also known as trade libel.

Disparagement of Property

Making false and damaging statements about someone's property or business practices, which may result in financial loss.

Legally Recognized Injury

A wrong or damage suffered by an individual which is identified and acknowledged under the law for purposes of compensation or remedy.

Negligent Act

An action or failure to act in a situation where a person has a duty to exercise reasonable care, resulting in harm to another party.