Which of the Following Would Be the Best Measure of Performance

question 47

Multiple Choice

Which of the following would be the best measure of performance for a profit centre?

• A) Residual income
• B) Return on investment (ROI)
• C) Segment margin
• D) Economic value added (EVA)

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Definitions:

Board Members

Individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Shareholders

Individuals or institutions that own one or more shares of stock in a public company, thereby having a partial ownership stake in the company.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Merger Proposal

An offer or plan for two or more companies to consolidate into one entity, often aiming to achieve market expansion, diversification, or efficiencies.