The Best Measure for Evaluating the Effectiveness of a Manger

question 145

Multiple Choice

The best measure for evaluating the effectiveness of a manger in an investment center would be ________.

• A) residual income measures
• B) success in controlling costs
• C) success in meeting budgeted revenues
• D) current ratio measures

---

Definitions:

Borrowed

The act of obtaining or receiving funds or goods with the promise or understanding of returning or repaying the lender at a later date, usually with interest.

Interest Rate

The proportion, in a percentage, at which interest is paid by borrowers for the use of money that they borrow from a lender. It is a critical component of the credit markets.

Years

A unit of time equal to 365 days (or 366 days in a leap year), used in calendar timekeeping.

Present Value

The value right now of a sum of money expected in the future or a sequence of cash inflows, factoring in a specific rate of return.