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As a Result of Friction Between Internal Parts of an Isolated

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As a result of friction between internal parts of an isolated system


Definitions:

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investment and non-operational assets.

Return On Investment (ROI)

Net operating income divided by average operating assets. It also equals margin multiplied by turnover.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

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