Reference: 12-05
the Holmes Division Recorded Operating Data as Follows

question 14

Multiple Choice

Reference: 12-05
The Holmes Division recorded operating data as follows for the past year: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 200,000 \\\hline \text { Net operating income } & 25,000 \\\hline \text { Average operating assets } & 100,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Residual income } & 13,000 \\\hline\end{array}$$
-For the past year, the return on investment was?

• A)25.00%
• B)15.75%.
• C)31.25%.
• D)20.50%.

---

Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the reinforcement of desired behaviors and the discontinuation of undesired ones.

B.F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Law of Effect

A principle in psychology that states behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

Organisational Behaviour Modification Strategy

A systematic approach to changing behavior within an organization using principles of behavior analysis and reinforcement.