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.

---

Definitions:

Vagina

A tubular organ that extends from the uterus to the labia.

Wet Mount

A sample preparation method for microscopic examination involving placing a liquid specimen between a slide and cover slip.

Potassium Hydroxide

A chemical compound (KOH) often used in industry as a strong base or alkali.

Sterile Water

Water that has been purified and treated to remove all microorganisms and contaminants, used for medical applications.