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A Limitation of ROI as a Measure of Performance Is

Question 13

Multiple Choice

A limitation of ROI as a measure of performance is that


A) it is a single comprehensive figure examining only one facet of the firm.
B) it provides an disincentive to use existing assets efficiently.
C) it provides a disincentive to acquire new assets.
D) it can be computed only after profits are totaled for a period.
E) it does not provide the basis for common comparison.

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