Which of the Following Is the Most Appropriate Short-Term Financial-Performance

question 29

Multiple Choice

Which of the following is the most appropriate 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:

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound, contributing to our perception of pitch.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Oval Window

A membrane-covered opening that leads from the middle ear to the inner ear, transmitting vibrations from the eardrum to the cochlea.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing; it translates sound vibrations into nerve impulses.