If the Operating Asset Turnover Ratio Increased by 30 Percent

question 73

Multiple Choice

If the operating asset turnover ratio increased by 30 percent and the margin increased by 20 percent,the divisional ROI

• A)would increase by 56 percent.
• B)would decrease by 60 percent.
• C)would increase by 20 percent.
• D)cannot be determined.

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Definitions:

Conglomeration

A large corporation formed by the joining together of diverse companies across various industries.

Media Ownership

Refers to the control or ownership of media companies by private or corporate entities.

Mergers

The combination of two or more organizations into one, usually with the goal of gaining efficiencies or market power.

Obscenity

Material or speech that offends the prevalent sexual morality of the time, often subject to legal prohibition.