Which One of the Following Is NOT an Advantage of Using

question 5

Multiple Choice

Which one of the following is NOT an advantage of using ROE as a goal?

• A) ROE is highly correlated with shareholder wealth maximisation.
• B) ROE and the DuPont analysis allow management to break down the performance and identify areas of strengths and weaknesses.
• C) ROE does not consider risk.
• D) All of the above are advantages of using ROE as a goal.

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Definitions:

Autonomy

The ability to assert one’s own needs in a relationship.

Guilt

A psychological condition that arises when an individual believes they have done wrong, violating moral or ethical standards.

Social-Learning View

A theory that emphasizes the role of observation, imitation, and modeling in acquiring new behaviors and skills.

Differential Reinforcement

A technique used in behavior modification that involves reinforcing specific behaviors while extinguishing undesired ones through omission of reinforcement.