A Manager Can Increase His/her Return on Investment (ROI) By

question 82

Multiple Choice

A manager can increase his/her return on investment (ROI) by:

• A) reducing the asset turnover.
• B) decreasing residual income.
• C) increasing the operating profit margin.
• D) expanding operating assets while holding sales and expenses constant.

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Definitions:

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Market Price

The ongoing price point for buying or selling a service or asset in the market.

Put Option

An agreement that allows the holder to sell a predetermined quantity of a particular asset at an agreed-upon price before a certain deadline, without being required to do so.

Exercise Price

The exact price at which an option's holder is allowed to purchase (for a call option) or sell (for a put option) the asset underlying the option.