Under the Notion of Controllability, It Is Appropriate to Evaluate

question 7

Multiple Choice

Under the notion of controllability, it is appropriate to evaluate the profitability of each investment center based on each center's:

• A) Operating income before tax.
• B) Operating income after tax.
• C) Return on sales (ROS).
• D) Profit earned in relation to the amount of capital invested in the subunit.
• E) Return on equity (ROE).

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Definitions:

Empowering Leadership

Leadership style characterized by delegation of authority, encouragement of employee autonomy, and fostering of a supportive environment.

Ethical Leadership

A leadership philosophy that is characterized by decision-making and actions guided by values, morality, and respect for stakeholders.

Providing Direction

Offering guidance, instructions, or pathways for action to achieve specified goals or objectives.

Stewardship

The responsible overseeing and protection of something considered worth caring for and preserving.