Which of the following occurs when a firm tries to increase its ROI by simply reducing the denominator while holding or increasing the numerator constant?
A) Reengineering
B) Emergent strategy
C) Numerator management
D) Denominator management

Question

Quizplus · Accepted Answer

This strategy is called denominator management, where the firm reduces the denominator (invested capital) to increase ROI without necessarily improving the efficiency of its operations. This strategy may involve selling off assets or outsourcing non-core functions to decrease capital invested.

Which of the Following Occurs When a Firm Tries to Increase