Criticisms of Return on Investment as the Only Performance Measure

question 60

Multiple Choice

Criticisms of return on investment as the only performance measure include:

• A) ROI focuses on short-term decisions.
• B) ROI is focused on only one component of the value chain.
• C) Managers evaluated based only on ROI are sometimes motivated not to make an investment that is in the best interest of the organization as a whole.
• D) All of the above.

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Definitions:

Eye Protection Filter

A protective device or coating that shields the eyes from harmful light or debris.

Oxyacetylene Cutting

A process that uses a mixture of oxygen and acetylene gases to cut through metal by burning or oxidizing.

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An electrical clamp designed to securely connect grounding wires to a rod or other types of grounding systems, ensuring a safe path for excess electricity.

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A process of joining metals by generating an electric arc between an electrode and the base material, melting the metals at the welding point.