When an organization allows divisional managers to be responsible for short-term loans and credit, the division's invested capital should be measured by:
A. average total assets minus average total liabilities.
B. average total assets minus average current liabilities.
C. total assets minus total liabilities.
D. average total liabilities minus total assets.
E. average total liabilities minus average current assets.
Answer: B
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A company produces 1000 packages of chicken feed per month. The sales price is $7 per pack. Variable cost is $1.50 per unit, and fixed costs are $1700 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.50 to $2.00 per unit, but there will be no change in fixed costs. The company will price the new product at $4.30 to compete with other products. How will this affect operating income?
A) Operating income will decrease by $3200 per month. B) Operating income will increase by $3200 per month. C) Operating income will decrease by $1700 per month. D) Operating income will remain unchanged.
The term "branded house" is used to describe firms like Virgin Group, that uses distinct individual brand names to cover a range of diverse service offerings in unrelated fields
Indicate whether the statement is true or false
Using operant resources effectively address which characteristic of services?
a. Intangibility b. Inseparability c. Variability d. Perishability e. Target audience involvement
What is Web 2.0?
A. a type of Internet platform that displays information but does not have interactivity B. a program that allows businesses to sell merchandise on the Internet more securely C. a new form of web-based video communications technology D. social networking sites that allow users to publish and share information E. an advanced type of search engine that disregards most unusable data