What Is an Advantage of the ROI Performance Measure

Multiple Choice

What is an advantage of the ROI performance measure?

A) It encourages managers to focus on the short run at the expense of the long run.
B) It encourages managers to focus on the relationship among revenues, expenses, and investment.
C) It produces a narrow focus on divisional profitability at the expense of the profitability of the overall firm.
D) It discourages managers from investing in projects that would decrease divisional ROI but increase the profitability of the company as a whole.