Baggins Incorporated Identifies New Product Development and Product Improvement as the Top

question 3

Multiple Choice

Baggins Incorporated identifies new product development and product improvement as the top corporate goals.An employee developed an innovation that will correct a shortcoming in one of the company's products.Although Baggins current Return on Investment (ROI) is 10%,the product innovation is expected to generate ROI of 15%.As a result,awarding bonuses to employees based on ROI resulted in

• A)goal conflict.
• B)information overload.
• C)goal congruence.
• D)decreased value of information.

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Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its most liquid assets without having to sell inventory.

Financial Data

Quantitative information about financial conditions, transactions, and performance of a person, company, or entity.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Days

Units of time consisting of 24 hours, often used to specify timeframes or durations.