A weakness of return on investment is that it tends to emphasize short-run benefits over long-run benefits.

Question

Quizplus · Accepted Answer

Return on investment is calculated by dividing the net profit by the initial investment. This metric focuses on the short-term financial gains and does not take into account the long-term benefits or the time value of money. It may not reflect the true value of an investment over time and can lead to poor decision-making if long-term benefits are not considered.

A Weakness of Return on Investment Is That It Tends