The West Division of Cecchetti Corporation Had Average Operating Assets

question 56

Multiple Choice

The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in August. The minimum required rate of return for performance evaluation purposes is 19%.What was the West Division's minimum required return in August?

• A) $45,600
• B) $42,200
• C) $53,618
• D) $8,018

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Definitions:

Boomerang Effect

A phenomenon where an attempt to persuade or change a belief has the opposite effect, reinforcing the original belief or behavior.

Negative Attitude Change

A shift in a person's feelings and dispositions from positive or neutral to negative towards an object, person, or situation.

Halo Effect

A cognitive bias where the perception of one positive characteristic influences the assumption of other positive traits in the same individual.

Sleeper Effect

A phenomenon where a message that initially has little impact becomes more persuasive over time, typically because of a delay in the message's perceived importance or credibility.