A Manager Is Evaluated Based on Return on Investment

question 105

Multiple Choice

A manager is evaluated based on return on investment.The corporate minimum required return is 11 percent and the manager runs a division that has attained a 14 percent return on investment.Which of the following statements is true?

• A)The manager will most likely not invest in a project that has a return on investment of 13 percent.
• B)The manager will invest in all projects that increase operating income.
• C)The manager will not consider projects that exceed 14 percent.
• D)The manager may prefer to invest in projects that have a return on investment that is very close 11 percent to stay in line with corporate expectations.

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Definitions:

High Achiever

An individual who consistently exceeds standard expectations and goals through hard work and talent.

Equity Model

A theoretical framework suggesting that fairness in the distribution of resources and rewards within social relationships and organizations is essential for satisfaction and motivation.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Behavior

The observable actions or responses of humans or animals.