Which of the Following Is an Advantage of the ROI

question 61

Multiple Choice

Which of the following is an advantage of the ROI performance measure?

• A)It encourages managers to focus on the relationship among revenues, expenses, and investment.
• B)It discourages managers from investing in projects that would decrease divisional ROI but increase the profitability of the company as a whole.
• C)It encourages managers to focus on the short run at the expense of the long run.
• D)It produces a narrow focus on divisional profitability at the expense of the profitability of the overall firm.

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Definitions:

Social-cognitive Learning

A theory that posits learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Existentialism

A philosophical approach that emphasizes the inevitable dilemmas and challenges of human existence.

Inevitable Challenges

Refers to difficulties or obstacles that are certain to occur and cannot be avoided.

Meaning of Life

A concept that pertains to the significance of living or existence in general, often involving philosophical, religious, and existential inquiries into why we live and what our purpose is.