If a Large Diversified Company Has Many Different Divisions, Each

question 68

Multiple Choice

If a large diversified company has many different divisions, each competing for capital expenditure funds, which of the following statements would be MOST relevant?

• A) The division with the lowest assets should have priority for investment funds to allow that division to grow to the scale of the other divisions.
• B) The division with the highest operating income should take priority, because it will likely continue to earn the highest operating income for the company.
• C) The division with the highest ROI should take priority because it shows that it can produce the highest return per invested dollar.
• D) The division with the highest growth rate in assets should be given additional funding.

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Definitions:

Stimulate Senses

To actively engage or excite the sensory organs, including sight, sound, touch, taste, and smell, often to enhance learning or enjoyment.

Coordinate Sight

Refers to the ability to align visual perception with motor coordination, crucial for tasks requiring eye-hand or eye-foot coordination.

Acquire Skills

the process of learning or developing new abilities or expertise through practice, study, or experience.

Being Quiet

The state or condition of making little or no noise; often a behavior encouraged in certain settings to promote focus, respect, or calmness.