Which of the Following Situations Is Most Likely to Pose

question 62

Multiple Choice

Which of the following situations is most likely to pose a problem for companies that use return on investment (ROI) as a measure of a manager's performance?

• A) Managers may be encouraged to purchase more operating assets than they otherwise should.
• B) Managers may be discouraged from purchasing operating assets that could improve overall profitability.
• C) Managers may be discouraged from reducing their division's costs.
• D) Managers may be discouraged from paying off debt in order to reduce interest costs.

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Definitions:

Vertical Lines

Lines that run up and down the page or canvas, often used in art and design to convey strength and stability.

Sensory Crossover

The phenomenon where stimulation of one sensory or cognitive pathway leads to automatic, involuntary experiences in a second sensory or cognitive pathway.

Synesthesia

A condition in which one sense is simultaneously perceived as if by one or more additional senses.

Basic Tastes

The fundamental taste sensations experienced by humans, traditionally categorized as sweet, sour, salty, bitter, and umami.