Residual income is determined as
a. income times the asset turnover rate.
b. income times the inventory turnover rate.
c. income minus (asset base times target rate of return).
d. sales minus (asset base times target rate of return).
C
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Peter, the owner of a local real estate agency, is even more committed to making the used copier, which he recently purchased, work even though it keeps jamming, and his employees have been telling him about other problems they have been having with the copier. The ______ affects Peter's decision making.
A. framing effect B. narrow focus bias C. anchoring and commitment bias D. escalation of commitment bias E. fog effect
The issue of workplace bullying is more predominant in the service sector because:
A. most of the organizations in this sector are decentralized. B. of its strong hierarchy of authority. C. it lacks the right of due process. D. that work relies significantly on interpersonal relationships and interaction.
Selected current year company information follows: Net income$15,953 Net sales 712,855 Total liabilities, beginning-year 83,932 Total liabilities, end-of-year 103,201 Total stockholders' equity, beginning-year 198,935 Total stockholders' equity, end-of-year 121,851 The return on total assets is:
A. 2.24% B. 3.64% C. 6.28% D. 4.67% E. 2.81%
The purpose of a contract is to:
a. make it easy to do international business transactions b. encourage innovation c. encourage investment d. give parties confidence that bargained-for exchanges will be enforceable e. give parties confidence that they will make a profit