1. What factors affecting ROI does the DuPont method highlight?
2. ‘Residual income is not identical to ROI although both measures incorporate profit and investment into their computations.' Do you agree? Explain.
3. Describe economic value added®.
4. Give three definitions of investment used in practice when computing ROI.
5. Distinguish between measuring assets based on current cost and historical cost.
6. Why is it important to distinguish between the performance of a manager and the performance of the organisation subunit for which the manager is responsible? Give examples.