Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Which of the following is NOT true for Return of Investment technique?

Options:

It is a traditional Technique of Management.

RoI can be used to measure overall performance of an organisation or of its individual departments or divisions.

It is used for measuring return on capital invested by the owners.

Both 1 and 2

Correct Answer:

It is a traditional Technique of Management.

Explanation:

RoI is a modern Technique of management. Return on Investment (RoI) is a useful technique which provides the basic yardstick for measuring whether or not invested capital has been used effectively for generating reasonable amount of return. RoI can be used to measure overall performance of an organisation or of its individual departments or divisions.