The primary reason ROI is by itself not enough to communicate strategy is that it only reflects the effect of components of the income statement.

Name: The primary reason ROI is by itself not enough to communicate strategy is that it only reflects the effect of components of the income statement.
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Question

Quizplus · Accepted Answer

ROI (Return on Investment) considers both the income statement and the balance sheet since it measures the return on invested capital, not just the income or profit generated.

The Primary Reason ROI Is by Itself Not Enough to Communicate