The Segment Return on Assets

question 113

Multiple Choice

The segment return on assets:

• A)Can only be determined for international companies.
• B)Is a measure of the profitability of a segment.
• C)Is difficult to calculate because companies with traded stock are not required to report segment information.
• D)Is calculated as segment average assets divided by segment operating income.
• E)Is calculated as segment sales divided by segment average assets.

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Definitions:

Supply Chain Level

Denotes the stage or position of an entity within the overall network from raw materials to end customer.

Individual Firm Level

The perspective of analyzing business strategies, performance, and decision-making at the single company level.

Environmental Performance

An evaluation of how well an organization or product meets specific environmental criteria or standards, reflecting on sustainability practices.

Financial Performance

An assessment of how well an organization is using its assets to generate revenues and profits, judged by indicators like ROI and earnings.