A Measure Frequently Used to Evaluate the Performance of the Manager

question 45

Multiple Choice

A measure frequently used to evaluate the performance of the manager of an investment center is

• A) the amount of profit generated.
• B) the rate of return on funds invested in the center.
• C) the percentage increase in profit over the previous year.
• D) departmental gross profit.

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Definitions:

Declared Dividend

A portion of a company’s earnings that is approved by the board of directors to be distributed to shareholders on each share of the company's stock.

Common Stock Outstanding

The total number of a company's shares of common stock that are currently owned by investors, including both public and private investors.

Treasury Stock

Previously issued stock that has been bought back by the issuing company, reducing the amount of outstanding stock in the market.

Additional Paid-in Capital

The amount of money investors pay for shares above the par value during stock issuance, reflecting surplus investor contribution.