Why is return on investment (ROI) the most commonly used financial performance
measure?
A. It measures how far profits can decline before managers cannot meet interest
changes.
B. It measures how efficiently managers are collecting revenues from customers to pay
expenses.
C. It shows whether organizations canpay claims of short-term creditors without selling
inventory.
D. It measures how efficiently managers are turning inventory over.
E. It allows managers of one organization to compare performance with that of other
organizations.
An approach that creates teams of expert change agents known as “green belts and
black belts” to take control of problem finding, problem solving, and training other
employees in implementing solutions is called _____.
A. total quality management
B. continuous improvement
C. Six Sigma
D. lean manufacturing
E. return on quality (ROQ)