Return on Investment (ROI) Is a Term Often Used to Express

question 80

Multiple Choice

Return on investment (ROI) is a term often used to express income earned on capital invested in a division (investment center) . A division's ROI would increase if:

• A) Sales increased by the same dollar amount as expenses and total assets increased.
• B) Sales remained the same and expenses were reduced by the same dollar amount that total assets increased.
• C) Sales decreased by the same dollar amount that expenses increased.
• D) Sales and expenses increased by the same percentage that total assets increased.
• E) Net profit margin on sales increased by the same percentage that total assets increased.

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Definitions:

Automation

The technology by which a process or procedure is performed without human assistance.

Task Demands

The aspects of a job or task that require mental or physical effort, setting the baseline for what is expected in performance.

Physical Demands

The requirements for physical effort and stamina that a job entails.

Downsizing

The reduction of an organization's workforce to improve efficiency, performance, or competitiveness, often involving layoffs.