A Division's Return on Investment May Be Improved by Increasing

question 56

Multiple Choice

A division's return on investment may be improved by increasing:

• A) cost of goods sold and expenses.
• B) sales margin and cost of capital.
• C) sales revenue and cost of capital.
• D) capital turnover or sales margin.
• E) capital turnover or cost of capital.

---

Definitions:

Actual Delivery

In finance, refers to the physical delivery of a financial instrument or commodity as opposed to a settlement made in cash or another financial arrangement.

Long Corn Futures

An investment position that speculates on the future price increase of corn by purchasing corn futures contracts.

Delivery Date

The specific date on which a financial transaction or agreement is scheduled to be concluded.

Maintenance-Margin

The minimum amount of equity that must be maintained in a margin account to continue holding positions, preventing a margin call.