Since Residual Income (RI)is Not a Percentage,it Is Not Useful

question 64

Multiple Choice

Since residual income (RI) is not a percentage,it is not useful for:

• A)Comparing units of significantly different size.
• B)Evaluating the performance of subunits with high ROIs.
• C)Motivating goal-congruent behavior on the part of divisional managers.
• D)Evaluating the short-term financial performance of small divisions.
• E)Evaluating the short-term financial performance of larger divisions.

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A potential danger or harm that may arise from external or internal factors and impact an individual, organization, or system.

Lawsuit

A legal case brought to a court by one party against another seeking a resolution to a dispute.