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Which of the Following Statement(s) Is/are True

question 80

Multiple Choice

Which of the following statement(s) is/are true?
(A) If a division's return on investment (ROI) exceeds its cost of capital, then its residual income is positive.
(B) If a division's cost of capital equals its return on investment (ROI) , then its residual income is zero.


Definitions:

IT Applications

Information Technology Applications refer to software and platforms designed to facilitate and automate various business or personal tasks using technology.

Small Organizations

Businesses or groups characterized by a small team size, limited resources, and localized operations.

IT Steering Committee

An IT Steering Committee is a governance group that provides strategic direction for information technology initiatives, ensuring alignment with the organization's goals and priorities.

IT Managers

Professionals responsible for overseeing the information technology (IT) needs of an organization, including its hardware, software, and network systems.

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