Answer the Following Questions Using the Information Below:
Care Inc

question 122

Multiple Choice

Answer the following questions using the information below:
Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:
$$\begin{array} { l r r } & \text { North } & \text { South } \\\text { Sales } & \$ 6,000,000 & \$ 5,000,000 \\\text { Operating income } & 1,500,000 & 1,200,000 \\\text { Taxable income } & 1,200,000 & 700,000 \\\text { Investment } & 14,000,000 & 10,000,000\end{array}$$ The company's desired rate of return is 10%. Income is defined as operating income.
-What are the respective return-on-investment ratios for the North and South Divisions?

Identify the forms of business that provide owners with limited liability.

Understand the impact of business ownership forms on control, decision-making, and regulatory obligations.

Recognize how businesses are acquired and their implications for ownership and control.

Describe the concept of unlimited liability and identify which forms of business are associated with it.

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Definitions:

Takeoff

The phase in a project or venture where rapid growth or development begins, often after a period of foundation laying or preparation.

Resource Maturity

Resource maturity refers to the stage in a resource’s life cycle where it can reliably and sustainably support operations or production levels, typically seen in information technology and natural resources management.

Henri Fayol

A French engineer and theorist, recognized for developing one of the first comprehensive theories of management in the early 20th century.

Henry Mintzberg

A renowned Canadian academic and author known for his work on business and management structures, strategy, and organizational effectiveness.