When the Kiddie Village Daycare Center Looks at the Recent

question 20

True/False

When the Kiddie Village Daycare Center looks at the recent increase in the number of working mothers in its neighborhood to determine how many employees to hire,its managers are studying demographic forces.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investment and idle assets.

Controllable Margin

A measure of profitability that represents the amount of income over which managers have control, usually after direct costs have been deducted from revenues.

ROI

Return on Investment, a measure used to evaluate the financial performance of an investment by dividing the benefit (or return) of the investment by its cost.

Investment Center

A business unit within an organization that is responsible not only for generating profits but also for managing its own investments and capital.