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.

Comprehend the factors that facilitate group cohesion and effective communication.

Grasp the significance of group size on the functioning and intimacy levels within the group.

Acknowledge the importance and methods of establishing group guidelines and norms.

Recognize the role and methods of preliminary activities (e.g., interviews, pregroup meetings) in enhancing treatment group effectiveness.

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Definitions:

Debt to Assets Ratio

A financial ratio that measures the percentage of a company's assets that are financed by debt, used to gauge a company's financial leverage.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms.

Creditors

Individuals or institutions to which money is owed by a person or entity.

Profit Margin

Measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales.