Consider the Following Scenario When Answering the Following Questions

question 91

Multiple Choice

Consider the following scenario when answering the following questions:
Jones owns a factory that is dumping toxic waste into a river where Smith owns a resort.At present,Jones is not filtering the water that he dumps into the river.There is a filter he could install that would remove a significant amount of the toxic elements from the water before it is dumped in the river.Jones and Smith have each assessed the situation and come up with the following data:

-If property rights over the river are assigned to Smith,then

• A) Smith will force Jones to close the factory.
• B) Smith will pay Jones up to $75 per day to install the filter.
• C) Smith will pay Jones up to $125 to install the filter.
• D) Jones will install a filter and pay Smith at least $75 per day.
• E) Jones will install a filter.

---

Definitions:

ROA

Return On Assets, a financial ratio indicating the profitability of a company relative to its total assets, showcasing how efficiently a company uses its assets to generate earnings.

Metric Classification Scheme

A structured framework for categorizing and assessing various metrics or measurements based on predefined criteria to evaluate performance, progress, or outcomes.

SCOR Model

Supply Chain Operations Reference model; a diagnostic tool for supply chain management, covering all business processes and measuring total supply chain performance.

ROA Improvement

Strategies or actions taken to increase the Return On Assets, which measures how efficiently a company uses its assets to generate earnings.