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Which one of the following statements pertaining to the return on investment (ROI) as a performance
measurement is incorrect?
A. The use of ROI can make it undesirable for a skillful manager to take on trouble-shooting assignments
such as those involving turning around unprofitable divisions.
B. When the average age of assets differs substantially across segments of a business, the use of ROI
may not be appropriate.
C. ROI relies on financial measures that are capable of being independently verified while other forms of
performance measures are subject to manipulation.
D. The use of ROI may lead managers to reject capital investment projects that can be justified by using
discounted cash flow models.
Answer: C
Explanation:
Choice "b" is correct. ROI is no more and no less capable of being independently verified or manipulated
than other performance measure.
Choice "a" is incorrect. Old fixed assets may be undervalued and make comparison with a segment with
newer assets inappropriate.
Choice "c" is incorrect. Investment projects with positive present value may be rejected because ROI is
too low.
Choice "d" is incorrect. Turning around an unprofitable division would be good for the company but would
probably lower a manager's ROI.
Which of the following tasks can the Marketing work center do? Note: There are 3 correct answers to this question.
A. Manage marketing documents and competitor products
B. Report marketing success
C. Manage target groups and campaign response options
D. Plan marketing events and locations
E. Track and respond to social media posts
Answer: A,B,C
Which current infrastructure limitation prevents doctors in London from working remotely if the London datacenter shuts down unexpectedly?
A. There are no roaming user profiles
B. There are no backups of the SQL Server databases
C. There is no failover datacenter for London
D. There is no disaster recovery plan for the mobile workforce
Answer: D
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