A Disadvantage of Using ROI to Evaluate Performance Is That

question 103

True/False

A disadvantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

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Definitions:

Foundational Values

Core beliefs and principles that form the underpinning for organizational culture, decision-making, and strategies.

Identify

To establish the identity of someone or something, recognizing them as distinct or unique.

Intentional Deception

The act of deliberately misleading or lying to others, potentially to gain an advantage or hide information.

Unfair Economic Advantage

A situation where a business or country gains a superior position in the market or economy through unethical, illegal, or inequitable practices.