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What is often the result when small business managers do not delegate authority and responsibility?
Residual Income
Earnings that exceed the minimum required return on investment; it's what remains after all costs and expenses have been deducted.
Return on Investment
A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments, calculated as net profit divided by the cost of the investment.
Gross Margin
The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.
Average Operating Assets
The average value of a company's assets used in its operating activities over a certain period.
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