Suppose a Company Evaluates Divisional Performance Using Both Return on Investment

question 311

True/False

Suppose a company evaluates divisional performance using both return on investment (ROI) and residual income. The company's minimum required rate of return for the purposes of residual income calculations is 12%. If a division has a residual income of $6,000, then its return on investment is less than 12%.

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Definitions:

Stepping Movements

Reflexive motions observed in infants, resembling walking, when the soles of their feet touch a flat surface.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Crawling

A form of locomotion achieved by moving on hands and knees, an essential developmental milestone in infants.

Danger

The possibility of harm or injury; the potential for a situation, action, or event to cause physical, emotional, or environmental damage or risk.