By Use of the Rate of Return on Investment as a Divisional

question 119

True/False

By use of the rate of return on investment as a divisional performance measure,divisional managers will always be motivated to invest in proposals that will increase the overall rate of return for the company.

Identify the motivations behind a firm's need for liquidity, including precautionary, transaction, speculative, and float motives.

Analyze the primary reasons why firms have cash surpluses, including financing planned expenditures and investing funds.

Learn the operational and financial benefits of employing a lockbox system, including reduced collection time and increased efficiency.

Calculate the financial impact and feasibilities of implementing cash management tools such as lockbox services or changing investment compositions.

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Definitions:

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization.

Feminization of Survival

The process through which women increasingly become the primary providers of subsistence for themselves and their families, often in contexts of economic disparity and social marginalization.

Migration

The movement of people from one location to another with the intention of settling temporarily or permanently in the new location.