Performance is frequently measured using residual income (RI) and return on investment

(ROI). However, these measures are often criticised for placing too great an emphasis on short-term results, with the possible eff ect of damaging longer-term performance.

(i) Discuss the issues involved in the long-term versus short-term confl ict referred to above.

(ii) Suggest some of the ways in which these issues may be reconciled.