The Shannon Division of the Wasson Widget Co

question 70

Multiple Choice

The Shannon Division of the Wasson Widget Co. requires a 12% rate of return. During a recent year Shannon had a net income of $400,000 and a residual income of $250,000. What was its ROI?

• A)32%
• B)15%
• C)12%
• D)26%

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Definitions:

Normative Influence

The effect of societal norms and expectations on an individual’s behavior, driving conformity to group standards to gain acceptance or avoid disapproval.

Social Disapproval

Negative reactions or responses from a social group or society towards certain behaviors, actions, or ideas.

Referent Informational Influence

The impact of adopting the behaviors or beliefs of a group or individual that one identifies with or aspires to be like for reasons of accuracy.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.