Which of the Following Statement(s)is/are True? (A)If a Division's Return

question 43

Multiple Choice

Which of the following statement(s) is/are true? (A) If a division's return on investment (ROI) exceeds its cost of capital,then its residual income is positive.(B) If a division's cost of capital equals its return on investment (ROI) ,then its residual income is zero.

• A) Only (A)is true.
• B) Only (B)is true.
• C) Both (A)and (B)are true.
• D) Neither (A)and (B)is true.

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Definitions:

Quantitative Forecasting

The use of numerical data and statistical models to predict future outcomes based on historical data.

Regression Analysis

Presupposes that a linear relationship exists between one or more independent (causal, or predictor) variables, which are predicted to affect the dependent (criterion) variable-in our instance, future HR demand for personnel (i.e., the number of employees).

Trend Projection

A forecasting technique that extends past data points into the future to predict outcomes, often used in sales, finance, and inventory planning.

HR Forecasting

A method used in human resources to estimate future workforce needs to achieve the organization's objectives.