How Is Residual Income Calculated

question 139

Multiple Choice

How is residual income calculated?

• A) operating income/(ROI × average operating assets)
• B) operating income - (ROI × average operating assets)
• C) operating income/(minimum rate of return × average operating assets)
• D) operating income - (minimum rate of return × average operating assets)

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information in the form of genes.

Mutation

A change in the DNA sequence of an organism's genome, which can lead to variations in physical appearance, behavior, or physiology.

DNA

A molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Genome

Includes all the hereditary information of an organism. The genome comprises the totality of the DNA, including the coding and noncoding regions.