Jennifer Baskiter is president and CEO of Plants&More.com, an Internet company that sells plants and flowers. The success of her startup Internet company has motivated her to expand and create two divisions. One division focuses on sales to the general public and the other focuses on business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for their businesses. She is considering using return on investment as a means of evaluating her divisions and their managers. She has hired you as a compensation consultant. What issues or concerns would you raise regarding the use of ROI for evaluating the divisions and their managers? (You may select

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1EB: Margos Memories, a company that specializes in photography and creating family and group photo...
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Jennifer Baskiter is president and CEO of Plants&More.com, an Internet company that sells plants and flowers. The success of her
startup Internet company has motivated her to expand and create two divisions. One division focuses on sales to the general public
and the other focuses on business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for their
businesses. She is considering using return on investment as a means of evaluating her divisions and their managers. She has hired
you as a compensation consultant.
What issues or concerns would you raise regarding the use of ROI for evaluating the divisions and their managers? (You may select
Ask
Transcribed Image Text:1 Jennifer Baskiter is president and CEO of Plants&More.com, an Internet company that sells plants and flowers. The success of her startup Internet company has motivated her to expand and create two divisions. One division focuses on sales to the general public and the other focuses on business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for their businesses. She is considering using return on investment as a means of evaluating her divisions and their managers. She has hired you as a compensation consultant. What issues or concerns would you raise regarding the use of ROI for evaluating the divisions and their managers? (You may select Ask
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