A Manager Is Evaluated Based on Return on Investment

question 105

Multiple Choice

A manager is evaluated based on return on investment.The corporate minimum required return is 11 percent and the manager runs a division that has attained a 14 percent return on investment.Which of the following statements is true?

• A)The manager will most likely not invest in a project that has a return on investment of 13 percent.
• B)The manager will invest in all projects that increase operating income.
• C)The manager will not consider projects that exceed 14 percent.
• D)The manager may prefer to invest in projects that have a return on investment that is very close 11 percent to stay in line with corporate expectations.

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Definitions:

Welfare Reform

Changes or amendments to government assistance programs aimed at improving efficiency, encouraging employment, and reducing dependency among beneficiaries.

Non-rational Factors

Elements that influence decision-making or behavior but are not based on logic or reasoning, such as emotions or traditions.

Political Ideologies

Systems of beliefs or ideologies that shape an individual's or group's political positions and strategies.

Widespread Problems

Issues or challenges that affect a large number of people or areas, often requiring comprehensive solutions.