To create goal congruence,some firms prefer calculating ROI based on the gross book value of asset.

Name: To create goal congruence,some firms prefer calculating ROI based on the gross book value of asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

By using the gross book value of assets, the firm ensures that managers are motivated to maintain and use the assets efficiently, which is in line with the overall goal of maximizing the ROI. This creates goal congruence between the firm and its managers.

To Create Goal Congruence,some Firms Prefer Calculating ROI Based on the Gross