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NEW QUESTION: 1
What is the primary disadvantage of using return on investment (ROI) rather than residual income (RI) to
evaluate the performance of investment center managers?
A. ROI does not reflect all economic gains.
B. ROI does not necessarily reflect the company's cost of capital.
C. ROI is a percentage, while RI is a dollar amount.
D. ROI may lead to rejecting projects that yield positive cash flows.
Answer: D
Explanation:
Choice "b" is correct. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows. Profitable investment center managers might be reluctant to invest
in projects that might lower their ROI (especially if their bonuses are based only on their investment
center's ROI), even though those projects might generate positive cash flows for the company as a whole.
This characteristic is often known as the "disincentive to invest."
Choice "a" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI is a percentage and RI is a dollar amount. The fact that
one is a percentage and one is a dollar amount might make them a little harder to interpret, but this
interpretation difficulty would certainly not seem to be the "primary" disadvantage.
Choice "c" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI does not necessarily reflect the cost of capital.
Choice "d" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI does not reflect all economic gains.
NEW QUESTION: 2
Robin has network access to her IBM WebSphere Portal server, and has deployed a project to it. How does she update the project on the WebSphere Portal server?
A. Regenerate the WAR file, its changes will automatically deploy
B. Regenerate the WAR file and invoke the proper xmlaccess script
C. Regenerate the WAR file and re-save the configuration of the portlet on the server
D. Save and run any model in the project, this will automatically re-deploy
Answer: A
NEW QUESTION: 3
A company has several web servers that need to frequently access a common Amazon RDS MySQL Multi-AZ instance. The company wants a secure method for the web servers to connect to thedatabase while meeting a security requirement to rotate user credentials frequently.
A company has several web servers that need to frequently access a common Amazon ROS MySQL Muto-AZ DB instance The company wants a secure method for the web servers to connect to the database while meeting a security requirement to rotate user credentials frequently Which solution meets these requirements
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