If You Are Hiking Through the Desert for Several Days

question 22

Multiple Choice

If you are hiking through the desert for several days, one would pack which of the following to ensure proper hydration?

• A) a drink with a combination of water and electrolytes
• B) caffeinated beverages
• C) bottled water kept at room temperature
• D) bottled water that had been frozen to ensure that it would be as cold as possible

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Definitions:

Investment Center

A business unit or segment that is responsible for its own revenues, expenses, and investments, and its performance is measured by its return on investment (ROI).

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Residual Income

The amount of income that an individual has after all personal debts, including the mortgage, have been paid. In a corporate context, it's the profit remaining after deducting the cost of capital.

DuPont Formula

A formula that breaks down Return on Equity into three parts: profitability, operating efficiency, and financial leverage, to analyze a company's financial health.