Use the Following Information of the Toro Division of Hondo

question 38

Multiple Choice

Use the following information of the Toro division of Hondo Corporation to answer the next question(s) :
Total divisional assets are $800,000. The firm's minimum required rate of return is 10%.
-The decision-making power of segment managers is called

• A) goal congruence.
• B) segment autonomy.
• C) managerial effort.
• D) segment superiority.

---

Definitions:

Technical Obsolescence

Technical obsolescence occurs when a product or component becomes outdated or less useful due to technological advancements, not because of physical wear.

Economic Conditions

The overall state of a country or region's economy, characterized by factors like GDP growth, unemployment rate, and inflation.

Initial Recognition

The first accounting entry for an asset or liability, marking its introduction in the financial statements at its fair value.

Financier Lessor

An entity engaged in the business of leasing out assets, typically providing the finance to purchase the asset which is then leased to the user.