Which of the Following Is Not a Criticism of Using

question 25

Multiple Choice

Which of the following is not a criticism of using ROI as the only performance measure?

• A)It may incentivize short-term decisions at the expense of long-term planning.
• B)It may incentivize decisions that are effective at the division-level,but not necessarily at the enterprise-level.
• C)It may incentivize employees to act in ways that are consistent with the overall goals and objectives of the organization.
• D)It may be too reliant on subjective or arbitrary allocations of capital.

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Definitions:

Corporate Strategy

The overall direction and scope of a company, involving the determination of how to achieve long-term goals and sustain competitive advantage.

Human Capital Perspective

Viewing employees as assets whose value can be enhanced through investment in education, training, and health improvements.

Invest

Putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Resources-Based View

A strategic framework that emphasizes the importance of internal capabilities and resources in gaining competitive advantage.