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Which of the Following Statements Comparing ROI and Residual Income

Question 45

Multiple Choice

Which of the following statements comparing ROI and residual income is correct?


A) ROI is more useful as a performance measure for a single investment centre.
B) Residual income is a better comparative measure than ROI.
C) ROI and residual income are equally good performance measures for a single investment centre.
D) Residual income is more useful as a performance measure for a single investment centre.

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