Safari Equipment Company Has Several Divisions That Are Investment Centers

question 181

Multiple Choice

Safari Equipment Company has several divisions that are investment centers.Data for the Boat Division and the Trailer Division are shown here:

Which of the following statements would be the most meaningful interpretation of this data?

• A)The Boat Division's performance is better than that of the Trailer Division because it has higher assets.
• B)The Boat Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment.
• C)The Boat Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income.
• D)The Boat Division is financially more successful than the Trailer Division because it shows an increase in assets.

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Definitions:

International Strategy

A strategy in which global markets are penetrated using exports and licences.

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The series of stages that a product goes through from conception, through design and manufacture, to service and disposal including introduction, growth, maturity, and decline.

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Food service establishments that allow customers to order and receive food without leaving their vehicles, aiming for convenience and speed of service.