Managerial Performance Can Be Measured in Many Different Ways Including

question 76

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:

• A)Residual income can be computed without having to measure operating assets.
• B)Managers are more likely to accept projects that are beneficial to the company.
• C)ROI does not take into account both turnover and margin.
• D)A minimum rate of return does not have to be specified when the residual income approach is used.

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Definitions:

Individual

Pertains to a single person or entity, distinct from others in a group or category.

Group

Two or more people who interact, share common goals, have unspoken or formal rules or norms, maintain stable role relationships, and form subgroups.

Attitudes

Mental and emotional entities that predispose us to respond in a particular way to objects, people, and events.

Satisfaction

A feeling of fulfillment or contentment resulting from achieving one's goals or desires.