Question

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:

Answer 1

Answer: return on investment

Explanation:

The return on investment is a ratio that exists between the net profit and the cost of that particular investment. It should be noted that a high return on investment simply means that the profit of the investment compare favourably to the cost incurred for that investment.

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of return of investment.