O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 22

Multiple Choice

O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available: The accounting rate of return for the Kentucky proposal is closest to

• A)10.32%.
• B)11.09%.
• C)10.00%.
• D)20.00%.

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Definitions:

Positive Reinforcement

Strengthens a behaviour by making a desirable consequence contingent on its occurrence.

Force-Coercion

A change strategy that involves using power to induce change through pressure or the use of authority, often leading to compliance but not necessarily agreement.

Political Manoeuvring

The strategic and often subtle actions taken within organizational or governmental contexts to gain advantage, influence decisions, or achieve specific outcomes.

Direct Forcing

A strategy where one party uses their power or authority to achieve their desired outcome without seeking compromise.