Question

Which of the following is not an advantage of ROI?

(A) It encourages managers of departments with high ROIs to invest in average ROI projects.
(B) It encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
(C) It encourages cost efficiency.
(D) It discourages excessive investment in operating assets.

Answer 1

(A) It encourages managers of departments with high ROIs to invest in average ROI projects.

Step-by-step explanation:

The full form of ROI is Return of investment. Generally, ROI is used by different organizations to find out the profit from the expenditure. By using the concept of return of investment the organization can save money as well as time.ROI also helps to explore and measure potential returns on various investment opportunities

Therefore answer is a.