If a Division Generates a Positive Residual Income Then the Division's

question 140

Multiple Choice

If a division generates a positive residual income then the division's

• A)asset turnover was very high.
• B)profitability was greater than that of other divisions in the company.
• C)performance was above expectations.
• D)actual return on investment exceeds the division's target return.

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Definitions:

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.

Labor Law

A body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.

Efficiency

In an economic context, the optimal allocation and use of resources to achieve the best possible output or outcome with minimal waste.

Equity

The value of an ownership interest in property, including shareholders' equity in a company, which represents the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.