What advantage and disadvantage for roi?

Answer 1

Return on investment (ROI) is a simple and common criterion used by both investors and company managers when analyzing a business's performance and making company investment decisions. Investors look at a company's invested assets and find out how much return management has been able to generate; managers will undertake new investment projects only if they promise satisfactory returns. Companies use other more advanced measures when selecting among competing investment opportunities, but because of the certain advantages of using return on investment, the measure is still adopted widely for investment evaluation by managers and the conveying of business results to investors. Disadvantages is vise versa.