Answer the following statements true (T) or false (F)
1. Companies evaluate investment centers using the same measures as the profit centers
2. Operating income alone does not indicate how efficiently a segment is using its assets.
3. Investment center managers are responsible for generating profits and making the best use of the investment center's assets.
4. To adequately evaluate an investment center's financial performance, summary performance measures should include both the division's operating income and its assets.
5. Net income is used in the numerator of the return on investment formula.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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When an extension on a deadline is needed, asking for the extension instead of demanding an accommodation for the delay _____
A) will be perceived as a sign of weakness B) will likely be seen as aggression C) is never recommended D) is more likely to generate goodwill and achieve a good business result E) may lead to confusion and dishonesty
Inventory turnover is a measure of liquidity that focuses on efficient use of inventory
Indicate whether the statement is true or false
The shadow price for a positive decision variable is 0
Indicate whether this statement is true or false.
If the principal and agent agree in advance how long their relationship will last, their agreement is called? A)an agency at will
B)an agency of purpose. C)an express agreement. D)a term agreement.