Hardin Division of WestCo Has Sales of $300,000 and NOPAT

question 100

Multiple Choice

Hardin Division of WestCo has sales of $300,000 and NOPAT of $15,000.The company's invested capital is $240,000 and its non-interest-bearing current liabilities are $20,000.What is Hardin Division's profit margin as it relates to investment center performance evaluation?

• A)8.0%
• B)6.25%
• C)5.0%
• D)6.8%

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Definitions:

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with those of a group or society's norms and expectations.

Spiral Of Silence

A theory suggesting that people may remain silent on their views when they believe they are in the minority, to avoid social isolation.

Popularity Contest

A competition where success is determined by the level of support or approval from the general public or a specific group of people.

Bandwagon

A phenomenon where the popularity or widespread acceptance of something encourages more people to adopt it, often regardless of their original opinion.