One Disadvantage of ROI in Evaluating Performance Is That It

question 119

True/False

One disadvantage of ROI in evaluating performance is that it encourages managers to slack off.

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Definitions:

Market

Any structured exchange where buyers and sellers interact to trade goods, services, or information.

Price

The capital amount projected, necessary, or handed over in trade for something.

Deadweight Loss

The loss in social surplus that occurs when a market is not in efficient equilibrium, often due to externalities, taxes, or subsidies.

Underproduction

Refers to the situation in which a country's or firm's output is less than its productive capacity, often leading to shortages and economic inefficiency.