When managers are evaluated on residual income, they will be more or less likely to purse projects that will benefit the entire company.
<h3>What is return on investment (ROI)?</h3>
Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost in an organization.
ROI can be used to compare the return on investments of a company over a period of time. It is calculated by dividing the Earnings Before Interest, Tax and Depreciation by Investments amount.
Hence, when managers are evaluated on residual income, they will be more or less likely to purse projects that will benefit the entire company.
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Answer: Bad debt expenses are generally classified as a sales and general administrative expense.
A tariff by definition is a tax to be paid on a particular class of imports or exports. so if people had to start paying extra for imported cars the demand for imported cars would be reduced and the demand for more domestic vehicles would rise.
Answer:
A recession occurs when an economy experiences a period in which there is - B. a decrease in total production.
According to economists, a recession is a two-consecutive quarterly periods of economic decline, as represented by GDP. In other words, if GDP falls for six consecutive months, we have a recession. And GDP is a measure of the total production of a particular region in a given period of time.
The business cycle exists because - D. total production experiences periods of increases and periods of decreases.
The business cycles refers to the cyclical nature of the periods of growth, and degrowth of total production of GDP. This means that it is natural and expected for total production to grow in some periods of time, and to fall in other periods of time, which affects firms and individuals accordingly: when GDP grows, firms produce more, hire more people, and incomes rise, when GDP falls, firms produce less, lay off people, and incomes stagnate, or go down.
Answer:
I would say D because it sounds more reasonable for me