Suppose a Company Evaluates Divisional Performance Using Both ROI and Residual

question 90

True/False

Suppose a company evaluates divisional performance using both ROI and residual income.The company's minimum required rate of return for the purposes of residual income calculations is 12%.If a division has a residual income of $6,000,then its ROI is less than 12%.

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Definitions:

Supportive Training Climate

An organizational environment that encourages continuous learning and development, supporting employees to enhance their skills and knowledge.

Encourage

To inspire with courage, spirit, or confidence; to stimulate by assistance, approval, or instruction.

Training Opportunities

Programs or courses offered by an employer or educational institutions to help employees gain new skills or improve existing ones.

Personnel Doctrine

A set of beliefs, practices, and policies used to manage human resources in an organization, guiding the recruitment, employment, and development of staff.