Figure 19-1 Assume the Division's Current ROI Is 10 Per Cent and Project

question 30

Multiple Choice

Figure 19-1 $$\begin{array} { c c c } \text { Project } & \text { Income } & \text { Investment } \\\text { A } & £ 40,000 & £ 800,000 \\\text { B } & 44,000 & 400,000 \\\text { C } & 46,875 & 625,000\end{array}$$ Assume the division's current ROI is 10 per cent and the firm's minimum required rate of return is 6 per cent.
-Refer to Figure 19-1. If you were the division manager and you were evaluated based on ROI, which projects would you accept?

• A)Projects A, B, and C
• B)Projects A and B
• C)Projects B and C
• D)Project B only

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Definitions:

Learning Theory

A theoretical framework describing how knowledge is absorbed, processed, and retained during learning, involving cognitive, emotional, and environmental influences as well as prior experience.

Acculturation Theory

A theory that explains the process of cultural change and adaptation when individuals from different cultures come into direct contact, leading to changes in cultural patterns of either or both groups.

Resocialization Theory

Refers to the process by which one's sense of social values, beliefs, and norms are re-engineered. This process is often done through an intense social process that may involve significant changes in social environment.

Functional

Relating to the purpose or role that something is designed or expected to fulfill.