If Net Operating Income Is $70,000, Average Operating Assets Are

question 291

Multiple Choice

If net operating income is $70,000, average operating assets are $250,000, and the minimum required rate of return is 16%, what is the residual income?

• A) $11,200
• B) $40,000
• C) $110,000
• D) $30,000

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Definitions:

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Behavior

The actions or reactions of an organism, often in relation to the environment, including the mannerisms and actions of individuals.

Subjective Terms

Refers to language or descriptions that are influenced by personal feelings, opinions, or interpretations rather than objective facts.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.