Astin Ltdrequires All of Its Divisions to Maintain a Return on on Investment

question 57

Multiple Choice

Astin Ltd.requires all of its divisions to maintain a return on investment (ROI) of at least 25 per cent.Over the past several years,one of Astin's divisions has consistently had the following information:
$\begin{array}{lr} \text {Sales } &\$2000000\\ \text {Net operating income } &500000\\\end{array}$

In order to achieve the company's ROI goals,this division should do which of the following?

• A) Maintain average operating assets of $2 000 000 or more.
• B) Maintain average operating assets of $2 000 000 or less.
• C) Maintain average operating assets of $125 000 or more.
• D) Maintain average operating assets of $125 000 or less.

Understand different types of decision-making biases and errors.

Recognize the importance of information validation and criteria for decision making.

Comprehend the principles of ethical decision making.

Understand the role and impact of information technology in decision making.

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Definitions:

Evidence-based Management

A practice where managerial decisions and organizational practices are made based on the best available evidence from multiple sources.

Evidence-based Science

A methodological approach that emphasizes the use of empirical evidence and research in the formation of scientific knowledge and policy-making.

Social Science Research

The systematic investigation of societal and human behavior through quantitative and qualitative methods.

Managers

Individuals in an organization responsible for planning, directing, coordinating, and overseeing the work of others to achieve the organization's goals.