Final answer:
Return on investment (ROI) is a performance measure that evaluates profitability. Relying solely on ROI may lead managers to prioritize short-term gains over long-term sustainability.
Step-by-step explanation:
The subject of this question is Business and it is at a College grade level. Return on investment (ROI) is a performance measure that calculates the profitability of an investment. It is often used by managers to evaluate the success of their decisions and the financial performance of a company. However, relying solely on ROI as a performance measure may lead managers to make decisions that prioritize short-term gains over the long-term sustainability and growth of the company. For example, a manager may focus on investing in projects with quick and high returns to improve the company's ROI in the short term. This could lead to neglecting other important aspects such as research and development, employee training, or long-term strategic investments that could benefit the company in the future.