The answer that best fit the given blank above is:
When managers are evaluated on residual income, rather than on return on investment (ROI), they will be more likely to pursue projects that will benefit the entire company.
What is Return On Investment (ROI)?
Return On Investment is the ratio to calculate the effectiveness of a given investment. Technically, ROI is the calculation of the net profit we get from the nominal investment money that has been spent.
This is usually done by investors to be able to determine the next business strategy, by knowing the results of the ROI that has been carried out. Especially if you want to develop a new business with net profit generated from previous business ROI
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