There is a need to combine return on investment (ROI)with long-term performance measures because:
A) ROI is a short-term performance measure.
B) managers can manipulate the ROI for their own benefit.
C) managers may reject an investment because it could decrease the overall ROI.
D) all of the options are true.

Question

Quizplus · Accepted Answer

All options are true. ROI is a short-term performance measure that does not take into account long-term consequences of an investment. Managers may manipulate the ROI metric to show better performance while rejecting investments that may have long-term benefits but lower immediate ROI. It is important to combine ROI with other long-term performance measures to ensure that investments are evaluated based on their full impact on the company's health and success.

There Is a Need to Combine Return on Investment (ROI)with