Residual Income

question 136

Multiple Choice

Residual income:

• A) is an alternative to ROI for manager performance evaluation..
• B) is the amount of income earned in excess of a predetermined minimum level of return on assets.
• C) is equal to ROI - (Average operating assets * Minimum required rate of return).
• D) both A and B.

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Definitions:

Tort Liability

A legal obligation arising from civil wrongs or injuries for which a court provides a remedy in the form of damages.

Intentional Pattern

Purposeful and systematic behaviors or actions, frequently discussed in legal contexts to demonstrate deliberate conduct.

Outrageous Abuse

An extreme form of misconduct or mistreatment that is shocking and exceeds the bounds of decency.

False Imprisonment

An act of restraining a person against their will in a bounded area without any legal justification.