Which of the Following Is the Most Appropriate and Comprehensive

question 77

Multiple Choice

Which of the following is the most appropriate and comprehensive short-term financial-performance indicator for an investment center that is a division of a larger business entity?

• A) Residual income (RI).
• B) Operating income, pre-tax.
• C) Return on equity (ROE).
• D) Operating income, after-tax.
• E) Return on sales (ROS).

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Definitions:

Concrete Operations

a stage in Jean Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Preoperational

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of operational thought.

Sensorimotor

A developmental stage in early childhood, as proposed by Piaget, where children learn about and experience the world primarily through their senses and motor actions.

Formal Operations

The final stage in Piaget's theory of cognitive development, starting around age 12, where individuals develop the ability to think abstractly, logically, and systematically.