Indicate Whether Each of the Following Statements Is True or False.Return

question 40

Essay

Indicate whether each of the following statements is true or false.Return on investment often is used to evaluate cost centers within a company.Return on investment measures a manager's ability to maximize earnings above a target level.To calculate residual income, a company must first set a target or desired return on investment.Residual income is stated as a dollar amount.Suboptimization occurs when a departmental or division manager seeks maximize benefit for the company as a whole at the expense of his or her own best interest.

---

Definitions:

Legal Business

Activities that are conducted within the boundaries of the law.

Civil Service System

A merit-based selection system for government employees excluding military and political appointments, aimed at ensuring competence and impartiality.

Politics

The activities associated with governance, or the debate and conflict among individuals or parties having or hoping to achieve power.

Pendleton Act

A federal law enacted in 1883 that established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.