Two Divisions of Central Company (Divisions X and Y) Have

question 50

Multiple Choice

Two divisions of Central Company (Divisions X and Y) have the same profit margins. Division X's investment turnover is larger than that of Division Y (1.2 to 1.0) . Income from operations for Division X is $55,000, and income from operations for Division Y is $43,000. Division X has a higher return on investment than Division Y by:

• A) using income from operations as a performance measure
• B) comparing the profit margins
• C) applying a negotiated price measure
• D) using its assets more efficiently in generating sales

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Definitions:

Paid Endorsements

Financial agreements in which influencers or celebrities promote a product or service on their social media channels.

Two-way Involvement

A communication model emphasizing reciprocal interaction between parties, allowing for feedback and engagement.

Control

The ability to direct, manage, or govern actions, individuals, or systems.

Audience Segmentation

The process of categorizing people into certain groups based on specific criteria, which can be broad in nature (e.g., demographics and population data) or very specific and focused (niche) on certain characteristics (e.g., experiential, visually driven, or industry and interest specific).