Managerial Performance Can Be Measured in Many Different Ways Including

question 40

Multiple Choice

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is that:

• A) residual income can be computed without regard to identifying an investment base.
• B) appropriate goal congruence behavior is more likely to occur when using residual income.
• C) residual income is well accepted in many organizations and often used in the financial press.
• D) ROI does not take into consideration both the investment turnover ratio and return-on-sales percentage.

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Definitions:

Passive Immunity

Passive immunity is the transfer of active humoral immunity in the form of ready-made antibodies, from one individual to another.

Active Immunity

The immunity that occurs when the body is exposed to an antigen and produces its own antibodies in response.

Local Inflammation

Inflammation confined to a specific area of the body. Symptoms include redness, heat, swelling, pain, and loss of function.

Hemorrhage

Excessive bleeding or the escape of blood from a ruptured blood vessel.