ROI is used to compare various units of a company to other companies in the industry, but is NOT used to compare various divisions within the same company because that would hinder creative management and competitiveness within the company.

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ROI is used to compare various units within the same company to determine profitability and efficiency. It is often used as a tool for management to evaluate which units are worth investing in and which ones need improvement. Comparing divisions within the same company using ROI can actually help promote competition and encourage creative management strategies to improve performance.

ROI Is Used to Compare Various Units of a Company