All Other Things Equal, Which of the Following Would Increase

question 327

Multiple Choice

All other things equal, which of the following would increase a division's residual income?

• A) Increase in expenses.
• B) Decrease in average operating assets.
• C) Increase in minimum required return.
• D) Decrease in net operating income.

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Definitions:

Top Executives

Individuals who hold the highest management positions in an organization, responsible for overall strategic decisions.

Environmental Constraints

Refers to the physical or legal limitations that impact the operations and decisions of an organization or individual.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that direct organizational activities toward achieving its goals.

Basic Tasks

Fundamental or primary duties and functions that need to be performed in a job role or project.