Which of the following statements is/are false?
i. Return on investment encourages managers to take a long-term view of corporate performance.
ii. Return on investment may encourage managers to defer the replacement of worn assets.
iii. Return on investment may encourage managers to increase expenditure on research and development.
A) i and ii
B) ii and iii
C) i and iii
D) All of the given answers

Question

Quizplus · Accepted Answer

Return on investment (ROI) typically encourages short-term performance focus and cost-cutting, which may lead to deferring asset replacement and reducing R&D expenditure, making statements i and iii false.

Which of the Following Statements Is/are False