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Carlton Division Has Been Stagnant for the Past Five Years

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Carlton division has been stagnant for the past five years, neither growing nor contracting in size and profitability. Investment in new property, plant and equipment has been minimal. Would the division's use of total assets (valued at net book value) when measuring return on investment result in (1) using numbers that are consistent with those in the balance sheet and (2) a rising return on investment over time?
Carlton division has been stagnant for the past five years, neither growing nor contracting in size and profitability. Investment in new property, plant and equipment has been minimal. Would the division's use of total assets (valued at net book value)  when measuring return on investment result in (1)  using numbers that are consistent with those in the balance sheet and (2)  a rising return on investment over time?   A)    B)    C)    D)


Definitions:

Slopes Downward

Describes a line or curve on a graph that decreases in value as it moves from left to right, indicating a negative relationship between two variables.

Curve

A line on a graph, which may be curved or straight, that depicts a relationship between two variables.

Two-Dimensional Graph

A visual representation of data on two axes, typically used to display the relationship between two variables.

Zero Slope

A characteristic of a line on a graph indicating that there is no change in the variable measured on the y-axis for any change in the variable on the x-axis.

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