Multiple Choice
Why do some companies prefer the use of economic profit over return on investment in decision-making?
A) The calculations for economic profit are easier.
B) The data needed to calculate return on investment are not always available.
C) Return on investment can motivate managers to make investment decisions that are not in the best interests of the company as a whole.
D) The concept behind economic profit is more logical.
Correct Answer:
Verified
Correct Answer:
Verified
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