11.A common criticism of capital ROI as a performance measurement criterion is that it encourages a long-term orientation sometimes to the detriment of shorter-term planning.
12.Using only ROI as a business performance measure often leads to the best decisions.
13.Residual income is calculated by subtracting the minimum acceptable return on the average invested capital from the operating income.
14.Residual income is the difference between net operating income at breakeven and actual net operating income.
15.EVA stands for "evaluating value added" performance.
16.The balanced scorecard approach attempts to measure whether an organization is meeting its strategic goals.
17.The value chain consists of only those activities that increase the selling price of a product as it is distributed to a customer.
18.The main objective of the balanced scorecard system of performance measurement is achieving the organization's strategic goals.
19.The value chain starts with the supplier and ends with the consumer.
20.A stock option is a right to sell a certain number of shares at a specific price sometime in the future.
21.Stock based performance evaluation of managers is considered more risky than accounting based performance evaluation.
22.Bonuses may be used to reward employees who meet performance goals.