Use the Following Information to Answer Question Hays Company Has Set a Target Return on Investment (ROI)

question 98

Essay

Use the following information to answer Question. Renfro Company has two divisions, the Restaurants Division and the Commissary Division. The following information was gathered for the two divisions in 2012: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Restaurants } \\\text { Division }\end{array} & \begin{array} { l } \text { Commissary } \\\text { Division }\end{array} \\\hline \text { Operating Income } & \$ 4,000,000 & \$ 1,500,000 \\\hline \text { Operating Assets } & \$ 30,000,000 & \$ 10,500,000 \\\hline\end{array}$$
Hays Company has set a target return on investment (ROI) of 12% for both divisions.
Assuming that these are the only divisions of Renfro Company, calculate ROI for the company as a whole.

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Definitions:

Outcomes

The results or consequences of actions or events, often measured to assess effectiveness or success.

Particularistic Criteria

involves judging or evaluating individuals based on characteristics specific to that individual, rather than on universal standards.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.

Ethical Imperialism

The practice of applying one's own ethical standards to individuals or organizations from different cultural or societal backgrounds.