Which of the Following Is a Disadvantage of a Focus

Multiple Choice

Which of the following is a disadvantage of a focus on return on investment?

A) It can encourage managers to focus on cost cutting efforts.
B) It can produce a narrow focus on divisional profitability at the expense of profitability for the overall firm.
C) It can encourage managers to cut inventories and reduce overall investment.
D) It can encourage managers to focus on the long run at the expense of the short run.
E) It can accomplish all of these disadvantages.