Hardin Division of WestCo

question 87

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 noninterest-bearing current liabilities are $20,000.What is Hardin Division's investment turnover as it relates to investment center performance evaluation?

• A)5.00
• B)6.25
• C)1.25
• D)0.80

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Definitions:

Critical Thinking Skill

The intellectual ability to analyze information, evaluate evidence, and understand arguments independently and thoughtfully.

Dominance Structuring

The organization or arrangement of elements within a system that establishes a hierarchy of control or influence.

Cognitive Risks

Refers to the potential hazards or errors in judgment that can occur due to biases, heuristics, and other limitations inherent in human cognition.

Dominance

A situation in social, ecological, or other forms of hierarchies where one entity exercises control or influence over others.