What is a potential disadvantage of using ROI as a performance measure for management?


Answers may vary based upon class discussions. One answer is that a manager may reject potential project or investments that are beneficial in the long-run, but may lower ROI.

Business

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Wendell Company owns 28% of the common stock of Porter Company and accounts for the investment using the equity method. Assuming that Wendell Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the

a. investment only b. investment plus Wendell's share of Porter's net income earned since the investment was purchased c. investment plus the total amount of dividends Wendell has received from Porter since the investment was purchased d. investment plus Wendell's share of Porter's net income earned since the investment was purchased minus the total amount of dividends Wendell has received from Porter since the investment was purchased

Business

The entry that includes a debit to Payroll Taxes and Benefits Expense also includes credits to Federal Unemployment Tax Payable and State Unemployment Tax Payable

Indicate whether the statement is true or false

Business

One component of the Dark Triad is ______.

A. neuroticism B. self-monitoring C. risk taking D. Machiavellianism

Business

Closely held corporations are subchapter "S" corporations

Indicate whether the statement is true or false

Business