Investment center managers are usually evaluated using performance measures
A) that combine income and assets.
B) that combine income and capital.
C) based on assets only.
D) based on income only.
E) that combine assets and capital.

Question

Quizplus · Accepted Answer

Investment center managers are responsible for generating income while efficiently using the assets under their control. Therefore, they are typically evaluated using performance measures that combine income and assets, such as return on investment (ROI) or residual income. These measures allow managers to be assessed on both the profitability of their investments and the efficient use of the resources entrusted to them.

Investment Center Managers Are Usually Evaluated Using Performance Measures