Which One of the Following Is a Correct Statement About

question 74

Multiple Choice

Which one of the following is a correct statement about residual income?

• A)Its goal is to maximize profits of an investment centre.
• B)It is less effective for evaluating investment centres than ROI.
• C)It is the ratio of controllable margin to the minimum rate of return on average operating assets.
• D)It evaluates performance by comparing the return of an investment centre with the company's minimum rate of return.

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Definitions:

Production Possibilities

Production possibilities depict the different combinations of goods and services that an economy can produce, given its available resources and technology, demonstrating the trade-offs and opportunity costs involved in production choices.

Unemployment Rate

The percentage of people in employment sectors who are unemployed and searching for jobs.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, nationality, disability, or other protected characteristics.

Negro League

A league of baseball teams that was active primarily in the United States among African American players when racial segregation prevented them from playing in the major leagues.