-Refer to Figure 1

question 32

Multiple Choice

-Refer to Figure 1.1. What two external factors affect the HR system?

• A) legal and socioeconomic environments
• B) vision/values and mission
• C) strategic objectives and organizational requirements
• D) personnel competence/commitment and effectiveness

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investment and idle assets.

Controllable Margin

A measure of profitability that represents the amount of income over which managers have control, usually after direct costs have been deducted from revenues.

ROI

Return on Investment, a measure used to evaluate the financial performance of an investment by dividing the benefit (or return) of the investment by its cost.

Investment Center

A business unit within an organization that is responsible not only for generating profits but also for managing its own investments and capital.