Managerial Performance Can Be Measured in Many Different Ways Including

question 40

Multiple Choice

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is that:

• A) residual income can be computed without regard to identifying an investment base.
• B) appropriate goal congruence behavior is more likely to occur when using residual income.
• C) residual income is well accepted in many organizations and often used in the financial press.
• D) ROI does not take into consideration both the investment turnover ratio and return-on-sales percentage.

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Definitions:

Sigmund Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

William James

A pioneering American psychologist and philosopher known for his contributions to pragmatism and functional psychology.

Empiricism

A philosophical theory that knowledge comes primarily from sensory experience, emphasizing the role of observation and experimentation in the formation of ideas.

Structuralism

An approach in psychology and other social sciences that emphasizes analyzing elements of human culture, behavior, and mind through the underlying structures that govern them.