An Activity Is Considered Automated When It Is Characterized by People

question 32

True/False

An activity is considered automated when it is characterized by people following procedures.

---

Definitions:

Residual Income

The amount of income that an individual or business has after all expenses and debts have been paid.

Return on Investment

A financial metric used to gauge the profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

EBIT, which stands for Earnings Before Interest and Taxes, indicates a firm's profit derived specifically from its primary business activities.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; calculated as sales divided by the investment in assets.