If a Company Contains a Number of Investment Centers of Differing

question 3

True/False

If a company contains a number of investment centers of differing sizes, return on investment (ROI) should be used rather than residual income to rank the financial performance of the divisions.

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Definitions:

Respondent Behavior

Behavior that occurs as a direct response to a specific stimulus without conscious thought.

Spontaneous Recovery

In psychology, the reappearance of a conditioned response after a delay or period of extinction.

Consistent

Showing steady conformity to character, profession, belief, or custom.

Experiments

Research methods employed to explore, verify a hypothesis, or prove an established truth.