Griffin Corp

question 30

Multiple Choice

Griffin Corp. is evaluating its Piquette division an investment center. The division has a $60000 controllable margin and $400000 of sales. How much will Griffin's average operating assets be when its return on investment is 10%?

• A) $600000
• B) $660000
• C) $400000
• D) $340000

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Definitions:

Capital Budget

A Capital Budget involves the planning and allocation of funds for long-term investments and infrastructure projects.

Two-Thirds Majority Vote

A voting requirement where at least two-thirds of the members present must agree for a proposal to pass, often used for significant decisions.

Transfer Payments

Payments made by the government to individuals for which no goods or services are provided in return, such as welfare benefits.

Budget Deficit

The situation where a government's expenditures surpass its revenue over a specific period, leading to borrowing or debt accumulation.