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Critical Thinking Questions Case 10-2

question 80

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Critical Thinking Questions Case 10-2
You are working for a new real estate agency that is trying to make a name for itself in a community with several agencies in the area already. You are helping to create a new large-scale advertisement that the agency is going to send to select areas around the city, and your boss would like you to explain BorderArt to him. He has never used it before.
When your boss asks you what BorderArt is and you tell him ____.


Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return or hurdle rate, often used in performance measurement.

Operating Assets

Assets that are used for the core operations of a business, necessary for creating goods or services to be sold.

Residual Income

Operating income that remains after deducting all required costs of capital from net operating profits, often used in performance measurement.

ROI

ROI, or Return on Investment, measures the efficiency or profitability of an investment by dividing the net profit from the investment by the initial cost of the investment, typically expressed as a percentage.

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