Household Brands Inc The Current Compensation Package Is an Annual Bonus Award

question 86

Multiple Choice

Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years:
$\begin{array}{lrrr}&\text { Revenue } & \text { Operating Income } & \text { Assets } \\\text { Cosmetics } & & & \\2018 & \$ 24,500 & \$ 2,300 & \$ 10,000 \\2019 & 22,500 & 1,900 & 10,000 \\2020 & 19,600 & 1,800 & 9,500\\\text { Household } & & & \\2018 & 17,400 & 1,300 & 7,500 \\2019 & 15,300 & 1,100 & 8,000 \\2020 & 12,500 & 900 & 6,500\\\text { Electronics } & & & \\2018 & 13,500 & 1,500 & 4,500 \\2019 & 9,500 & 1,100 & 4,500 \\2020 & 8,700 & 1,050 & 4,300\\\text { Household Brands Total }\\2018 & 55,400 & 5,100 & 22,000 \\2019 & 47,300 & 4,100 & 22,500 \\2020 & 40,800 & 3,750 & 20,300\\\end{array}$
The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits.
Asset turnover in the electronics division in 2020 is (rounded) :

• A)1.82
• B)2.02
• C).733
• D)2.31

Identify considerations in planning health education programs.

Recognize the importance of community and participant involvement in health education.

Understand barriers to behavior change and strategies to overcome them.

Appreciate the role of trust and relationship-building in health education.

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Definitions:

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Bank Checking Accounts

Banking services that allow customers to deposit, withdraw, and write checks against funds they have in the account.

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The establishment and enforcement of rules and standards by an authority, often government, to regulate activities within a specific domain.

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The marketplace in the United States for trading financial instruments like stocks, bonds, foreign exchange, and derivatives.