Multiple Choice
Why is return on investment (ROI) the most commonly used financial performance measure?
A) It predicts whether profits will cover fixed costs.
B) It helps monitors the level of debt an organization is carrying in order to maintain a good credit rating.
C) It shows whether organizations can pay creditors without selling assets.
D) It measures how efficiently managers are turning inventory over.
E) It allows managers of one organization to compare performance with that of other organizations in its industry.
Correct Answer:
Verified
Correct Answer:
Verified
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