Which of the Following Is Not a Measure That Management

question 116

Multiple Choice

Which of the following is not a measure that management can use in evaluating and controlling investment center performance?

• A) return on investment
• B) negotiated price
• C) residual income
• D) income from operations

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Definitions:

Enterprise risk management

A comprehensive framework for identifying, assessing, managing, and monitoring the risks that an organization faces to maximize value.

Operational risk

The risk of loss resulting from inadequate or failed internal processes, people, systems, or external events affecting an organization's operations.

Reputation risk management

The process of identifying, assessing, and mitigating threats that could adversely affect an organization's reputation.

Managerial problem solving

The method by which managers identify, analyze, and resolve issues affecting their organization's operations and objectives.