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A Limitation of ROI as a Measure of International Performance

Question 99

Multiple Choice

A limitation of ROI as a measure of international performance is that


A) it is a single comprehensive figure examining only one facet of the firm.
B) it provides disincentive to use existing assets efficiently.
C) it provides an incentive to acquire new assets.
D) it is very sensitive to depreciation policy.
E) it does not provide the basis for common comparison.

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