Economic Measures of Divisional Performance in a Diversified Firm Compare

question 35

True/False

Economic measures of divisional performance in a diversified firm compare a division's performance with a firm's cost of capital and these measures increase the potential for gaming, which is generally minimized by accounting measures.

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Definitions:

Attention Recovery

The process of regaining concentration and focus on a task or environment after being distracted or disengaged.

Visual-recognition Memory

The ability to recognize previously encountered objects, symbols, or individuals by sight.

Habituation

The process of becoming accustomed to a stimulus through repeated exposure, leading to a decrease in response.

Cross-modal Transfer

The ability to transfer information or learning from one sensory modality to another, enhancing perceptual and cognitive skills.