All Other Things Being the Same, Which of the Following

question 11

Multiple Choice

All other things being the same, which of the following would increase the residual income?

• A)Decrease in average operating assets.
• B)Decrease in sales.
• C)Increase in minimum required return.
• D)Decrease in net operating income.

---

Definitions:

Environmental Protection Agency

A U.S. federal agency responsible for protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.

Violations

Acts of breaking or disregarding laws, rules, or agreements.

Environmental Impact

The effect that a company's actions have on the natural surroundings, including air, water, and land quality.

Regulatory Agencies

Government bodies responsible for enforcing laws and regulations to protect public health, safety, and welfare.