Under the Notion of Controllability, It Is Most Appropriate for Top

question 79

Multiple Choice

Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of:

• A) Profits generated in relation to the amount of capital invested in the unit.
• B) Returns expressed as a percentage.
• C) Profits expressed in absolute terms.
• D) Operating profit generated.
• E) Returns expressed in actual dollar amounts.

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Definitions:

Imaginary Audience

A belief of adolescents that they are or will be the focus of attention in social situations and that others will be as critical or approving as they are of themselves.

Naive Idealism

A cognitive development stage often observed in young adults and teenagers, characterized by the belief in the perfectibility of humans and society, sometimes without a practical understanding of the complexities involved.

Imaginary Audience

The belief, particularly common during adolescence, that one is constantly being watched and judged by others.