Which of the Following Statements Most Accurately Describes Residual Income

question 16

Multiple Choice

Which of the following statements most accurately describes residual income?

• A)how efficiently a division uses its average assets to generate sales there by profits
• B)how much operating income the division earns on every dollar of sales
• C)how much return a division generates on average assets
• D)how much extra income a division generates above the minimum acceptable level

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Definitions:

Inclusive Fitness

Genetic contribution an individual makes by reproducing, plus a fraction of the contribution it makes by facilitating reproduction of relatives.

Altruistic Behavior

Actions by an individual that benefit others at a cost to oneself, observed in social species, which may promote cooperation and social cohesion.

Kin Selection

Type of natural selection in which individuals with the highest inclusive fitness are favored.

Selfish Herd

A behavioral strategy where individuals in a group position themselves centrally to reduce predation risk.