The Auto Division of Big Department Store Had a Net

question 7

Multiple Choice

The Auto Division of Big Department Store had a net income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12 percent.Sales for the period totaled $3,000,000.The residual income for the period is

• A) $480,000.
• B) $360,000.
• C) $120,000.
• D) $80,000.

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Definitions:

Organizational Structures

The systems of roles, responsibilities, and authority within a company, determining how activities and resources are coordinated and managed.

Mission and Objectives

The fundamental purpose and goals that guide an organization, providing a direction for its actions and decision-making processes.

Virtual Organization

An organization that uses mobile IT to engage a shifting network of strategic alliances.

Boundaryless Organization

An organization that eliminates internal boundaries among subsystems and external boundaries with the external environment.