Answer the following statements true (T) or false (F)
1. Return on investment measures the profitability of an investment center but not the efficiency in using its assets.
2. The return on investment formula focuses on the amount of operating income earned before considering other revenue and expense items, such as interest expense.
3. The return on investment of a company is a measure of profitability and efficiency.
4. The return on investment of a company can be improved by either increasing average total assets or decreasing operating income.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
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Referring to Table 8-5, if we were to frame this as a linear programming problem, the objective function would be
A) maximize 9B + 12T. B) maximize 9T + 12B. C) minimize 10T + 10B. D) maximize 12T + 10B. E) None of the above
Economist Israel Kirzner proposed that entrepreneurs have a unique capability, which he called _____, to recognize existing opportunities for businesses.
A. innovative thinking B. market awareness C. entrepreneurial alertness D. opportunity recognition
If the U.S. Supreme Court denies a writ of certiorari, it means I. The court did not feel the case was important enough to review. II. The decision of the lower court is correct. III. The decision of the circuit court of appeals is effectively reversed. IV. The Supreme Court has agreed to hear the case
a. Only statement I is correct. b. Statements I and II are correct. c. Statements II and IV are correct. d. Only statement III is correct. e. Statements I, III, and IV are correct.
In a reverse auction, the winner ______.
is the supplier with the lowest bid is the buyer with the lowest bid is the supplier with the highest bid is the buyer with the highest bid