Question

Metrics (measures) that represent comprehensive (i.e., summary) short-term financial performance indicators of investment centers include ______.

Option 1:
A. Return on Equity (ROE)

Option 2:
B. Current Ratio

Option 3:
C. Return on Investment (ROI)

Option 4:
D. Earnings Per Share (EPS)

Answer 1

Comprehensive short-term financial performance indicators of investment centers include

Return on Investment (ROI).

ROI provides a measure of the returns generated on the investment relative to its cost, capturing short-term efficiency in utilizing investment capital.

Step-by-step explanation:

Metrics that represent comprehensive short-term financial performance indicators of investment centers include Return on Investment (ROI).

Option 1: A. Return on Equity (ROE) is more of a long-term profitability measure reflecting the returns generated on shareholders' equity. Option 2: B. Current Ratio is a liquidity measure that indicates the company's ability to pay short-term obligations.

Option 3: C. Return on Investment (ROI) is a widely used profitability measure that calculates the return generated on the investment relative to the cost of that investment.

Option 4: D. Earnings Per Share (EPS) is a measure of a company's profitability but doesn't necessarily reflect the returns on an investment center's specific projects or assets.

Return on Investment (ROI) is a summary measure that captures efficiency in utilizing investment capital to generate profits in the short term and is the right answer to the student's question.