Q$7)$ Using ROI or other measurements which have fixed percentage targets $($e$.$g$.$ a

division must achieve $15\%$ return on investment$)$ can be detrimental because:

a$)$ Employees are likely to internally trades stocks in advance of the financial

statements being released

b$)$ It prevents acquisitions from occurring

c$)$ Targets are often not aggressive enough to have a motivational impact

d$)$ Targets are often set too low to have significant impact

e$)$ It reduces creativity and innovation within the company