The major problem with the ROI metric is:
A) it is not useful for comparing the performance of competitors
B) it can induce managers to make decisions that are not in the interest of shareholders
C) it requires managers to make risky assumptions
D) all of the above

Question

Quizplus · Accepted Answer

ROI can lead managers to focus on short-term gains rather than long-term shareholder value, potentially leading to decisions that are not aligned with shareholder interests.

The Major Problem with the ROI Metric Is