Astin Ltd Requires All of Its Divisions to Maintain a Return

question 37

Multiple Choice

Astin Ltd. requires all of its divisions to maintain a return on investment (ROI) of at least 25%. Over the past several years, one of Astin's divisions has consistently had the following information: In order to achieve the company's ROI goals, this division should do which of the following?

• A) Maintain average operating assets of $2,000,000 or more.
• B) Maintain average operating assets of $2,000,000 or less.
• C) Maintain average operating assets of $125,000 or more.
• D) Maintain average operating assets of $125,000 or less.

---

Definitions:

Valued Outcome

An outcome from negotiations or decisions that is held in high esteem or considered beneficial by the involved parties.

Value Claiming

The process of negotiating to maximize one's own benefit from a deal or situation, often at the expense of others' interests.

Value Creating

The process of generating additional worth, utility, or benefits through innovative, entrepreneurial, or strategic activities.

Iterative Process

A method of achieving a desired outcome through repeated rounds of analysis or operations.