The Segment Return on Assets

question 98

Multiple Choice

The segment return on assets:

• A) Can only be determined for international companies.
• B) Reflects the profitability of a segment.
• C) Is difficult to calculate because companies with traded stock are not required to report segment information.
• D) Is calculated as segment average assets divided by segment operating income.
• E) Is calculated as segment sales divided by segment average assets.

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Definitions:

Pass the Buck

An expression referring to the act of shifting responsibility or blame from oneself to another person.

Process Structures

The design and organization of processes within a company, determining how activities are coordinated and executed.

Product Area

A distinct category or segment of a business's overall market, focused on a specific type of product or service offering.

Divisional Structure

A type of organizational structure where operations are grouped based on distinct divisions or units, each focusing on a particular product line, market sector, or geographical area.