Multiple Choice
Which of the following is not a disadvantage of the ROI performance measure?
A) It encourages managers to focus on the long run rather than the short run.
B) It discourages managers from investing in projects that would decrease divisional ROI but increase the profitability of the company as a whole.
C) It encourages myopic behavior.
D) All of these are disadvantages of the ROI measure.
Correct Answer:
Verified
Correct Answer:
Verified
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