Discuss the benefits of using ROI/ROA and residual income as performance measures. Include in your answer ‘goal congruence’ and ‘controllability’
Answers
In summary, using ROI, ROA, and residual income as performance measures offers benefits such as providing a clear evaluation of financial performance, promoting goal congruence, and emphasizing controllability.
Using ROI (Return on Investment) and ROA (Return on Assets) as performance measures offer several benefits for evaluating the financial performance of a business. Additionally, incorporating residual income can provide further insights. Let's explore these benefits and how they relate to goal congruence and controllability.
ROI and ROA: ROI and ROA provide a clear and straightforward measure of financial performance. They allow businesses to assess the efficiency and profitability of their investments and asset utilization. Both ratios indicate the return generated in relation to the investment or assets employed. Higher ROI and ROA values generally indicate better performance and efficient resource allocation.
Goal Congruence: ROI and ROA help align the goals of different stakeholders within an organization. These performance measures provide a common metric that can be understood and compared across different divisions or projects. This promotes goal congruence by ensuring that decision-makers at various levels focus on maximizing returns and making investment decisions that align with the organization's overall objectives.
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Related Questions
Malcolm wants to make a deposit into an account that earns interest. He wants to be able to access the money on a limited basis. What type of account should he not consider?.
Answers
The type of account that should not Malcolm consider is saving account. It happen if Malcolm wants to access the money on a limited basis.
In accounting, A savings account generally can be defined as a deposit account that generally earns higher interest than an interest-bearing checking account. The work principle of savings accounts is by limit the number of withdrawals that we can make from the account each monthly statement cycle or also certain types of transfers. So that, based on the question above, if Malcolm did not want to has a limit basis, he should not consider to saving account.
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what is the best approach to common stock valuation? why? give examples of when to use each.
Answers
The best approach to common stock valuation is the discounted cash flow (DCF) method, as it considers the company's future cash flows and time value of money to estimate its intrinsic value.
The DCF method takes into account the expected cash flows of a company, discounting them back to present value using a discount rate that reflects the risk associated with the investment. This approach provides a comprehensive and thorough analysis of a company's value, considering its growth prospects, profitability, and risk profile.
It is particularly useful for mature companies with stable cash flows and predictable growth patterns. On the other hand, it may not be suitable for early-stage companies or those with uncertain future cash flows.
In such cases, other methods like relative valuation (comparing the stock to similar companies in the industry) or precedent transactions (comparing the stock to similar past transactions) may be more appropriate.
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what is business?????????????
Answers
A business is defined as an organisation or enterprising entity engaged in commercial, industrial,or professional activities.
How can public health decrease the economic impact on health care?
Answers
Answer:
First, healthier people are more economically productive. Better health also leads to an increase in savings rates—because healthier people expect to live longer and are naturally more concerned with their future financial needs. Another bridge between health and the economy is education.
Explanation:
What is an economic indicator and why is it important? Use at least two complete sentences to provide your response.
Answers
Answer:
Answer is provided in two separate headings below.
Explanation:
Economic Indicator
They are briefly described as the figures used to understand the current position of the economy. Few examples of such are the Inflation rate, Gross Domestic Product (GDP), and Unemployment ratio compared to the populace.
Reason for Important
They are important because the information provided from them helps in grasping the state of the economy in the upcoming years. This data helps both the local and business individuals to make better decisions for their upcoming financial goals such as regarding the investment of capital, increase or decrease their employment level, buying property, etc.
Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resources
Answers
Answer:
AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.
Answer:
Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resources
Explanation:
AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.
Which example shows a victim authorizing a scam or fraud?
A. Juan got a call saying he had unpaid parking tickets and they asked for his credit card number. He gave it to them to avoid going to jail.
B. Drew paid for his meal using his credit card. The waiter copied his card and then used the card to purchase things later.
C. Deandre had his identity stolen when he lost his credit card.
D. Samantha used public Wi-Fi to log into her bank account. A couple of days later, there were some mysterious withdrawals from her account.
Answers
Answer:
most likely B
Explanation:
because it's fraud
Which statement best illustrates the relationship between three different
elements of the circular flow of products?
A. Product markets offer labor to businesses, which creates jobs for
households.
B. Resource markets sell goods to product markets, which sell the
goods to businesses
C. Households pay wages to businesses, which can then set up
product markets.
D. Businesses create goods for product markets, which sell them
directly to households.
Answers
Answer: is D
Explanation:
The statement, businesses create goods for product markets, which sell them directly to households, is best illustrates the relationship between three different elements of the circular flow of products.
What is a circular flow?
The most popular version of this model displays the circular flow of revenue between the consumer and business sectors. The product market and the resource market are placed between the two.
Consumer spending is the mechanism through which households' money flows to the market for goods and services when they are in need of them. The product market purchases goods and services from companies and sells them to households, making a profit.
As a result, option (d) is correct.
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The cash flow resulting from a firm's ongoing, normal business activities is referred to as the:
A. Operating cash flow.
B. Cash flow to retained earnings.
C. Net capital spending.
D. Additions to net working capital.
E. Cash flow to investors.
Answers
The cash flow resulting from a firm's ongoing, normal business activities is referred to as given by option A. Operating cash flow.
Operating cash flow represents the cash inflows and outflows directly related to a company's core business operations.
It reflects the cash generated or consumed by the day-to-day activities of the firm.
Such as revenue from sales, payments to suppliers, operating expenses, and taxes.
Operating cash flow is an important measure of a company's ability to generate cash from its primary operations.
And is often used to assess its financial health and sustainability.
Therefore, from a firm's ongoing normal business activities resulting the cash flow shows option A. Operating cash flow.
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
Answers
Considering the situation described above, this demand for bread can be categorized as a "static demand."
This is because a static demand is a type of demand that is not flexible at any given point.
Also, demand is said to be static when the change in quantity demand of a commodity is relative to a change in the unit price of a commodity.
Thus, in this case, when the demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year, this is an example of a Static demand because it is stable throughout the year.
Hence, in this case, it is concluded that the correct answer is "Static Demand."
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Derek can deposit $18,508.00 on each birthday beginning with his 30.00th and ending with his 68.00th. What will the rate on the retirement account need to be for him to have $3,642,917.00 in it when he retires?
Answers
The specific interest rate needed for Derek to accumulate $3,642,917.00 in his retirement account cannot be determined without using numerical calculations or financial tools.
We can solve this equation using trial and error or by using numerical methods such as Newton's method. However, as an AI text-based model, I am unable to perform numerical computations. Therefore, I recommend using a financial calculator or software that allows you to solve for the interest rate in annuity calculations.
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which statement best describes the relationship between businesses and other parts of the circular flow of goods?
A. businesses make rules about what resources will be available
B. businesses sell the goods produced in households
C. businesses create the goods that product markets sell
D. businesses make it easier for households to access resource markets
Answers
The statement that describes the relationship between businesses and other parts of the circular flow of goods is that it is the businesses that create the goods that product markets sell. Hence, Option C is correct.
What is the flow of goods?Right from the availability of the raw material to the delivery of the goods to the ultimate customer, there is proper supply chain management, it works with the aim of the flow of goods. There are various types of flow, like labor flow, money flow, and many more.
Sometimes it is a complicated web in which there are interconnected networks, which involve a distribution channel also. There is a flow of labor also available, whose work is to produce goods and services.
Therefore, Option C is correct.
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Typically, what percentage of the home cost should you have available for a down payment?
Responses
5%
25%
30%
50%
Answers
You can put down up to 50% of the total cost of the property if you have the necessary funds and your financial situation permits it.
Further more you can also.
Even 80% of the property's value is acceptable if you so choose. Everything depends on you and the amount of financial responsibility you are willing to take on. The greater the down payment you make, the less debt you are required to pay.
Now, speaking generally, the bank or an NBFC, depending on which one you choose to apply to for a home loan, will only lend up to 80% of the actual worth of the property. In exceptional circumstances, the lender might provide 85% finance, but not acent extra on top of that.
Therefore, it is abundantly evident from the calculations that you must put down at least 15-20% of the property's value.
In light of the actual worth of the property, you should correspondingly determine the down payment. I'm assuming that your property is worth somewhere between 35 and 37 lakhs based on the loan statistics you provided. That means your down payment will need to be at least 7-8 lakh.
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1. on culture: suppose the education system of a given country teaches values that can make it very difficult to do business profitably in the country. is that an impossible barrier, or is there anything that can be done to change it? defend your answer.
Answers
Education plays an important role in carving the personality of an individual, but other factors such as religion, culture and traditions are also responsible in shaping individuals personality.
What is culture?Culture is an umbrella term that encompasses human societies' social behaviour, institutions, and norms, as well as the individuals' knowledge, beliefs, arts, laws, customs, capabilities, and habits. Culture is frequently attributed to or originated in a specific region or location.
Education is important in shaping an individual's personality, but other factors such as religion, culture, and traditions are equally important.
Aside from these factors, an individual's perception of a situation or environment plays an important role in the development of specific personality traits.
As a result, a value-based educational system is not an impassable barrier to doing business. Individuals' working styles are influenced by their operating experience and perception of the business environment.
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IF You Join NDS Nuclear Death Skills Me As The Owner of The corporation
Name Your Team
A) What Will Be
B) or Ask Me The Owner To Name
C) Would Join The Black Alpha
D) Join The Black panther
E) Join The Umbrella Crop
F) Join Other One
Please Don't Report This is A Question Because This Has Answers And You Get
78 Points
Answers
Black Alpha
Roxanne wolf love u
What is the Congress or Legislative branch?
Answers
Answer:
The legislative branch is made up of the House and Senate, known collectively as the Congress. Among other powers, the legislative branch makes all laws, declares war, regulates interstate and foreign commerce and controls taxing and spending policies.
Explanation:
Over the last 100 years, marginal tax rates have been fluctuating constantly. Place the years in order by how high the top marginal rate was at the time. Place the year with the highest rate first.
Answers
Assume you have just been hired as a manager of CoffeePlace, a coffee shop located near Asoke junction. The company’s earnings before interest and taxes (EBIT) was 100,000 baht last year, and it is expected to remain constant (in real terms) over time. CoffeePlace plans to pay out all profits as dividends. The management group owns about 50 percent of the stock.
The firm is currently all-equity financed; it has 20,000 shares outstanding; and current price is 5 baht per share. When you took your MBA corporate finance course, your instructor explained that most firms’ owners could be better off financially if the firms used some debt. When you suggested this to your new boss, he encouraged you to follow up with the idea. As a first step, you consulted with the firm’s investment banker and obtained the following estimated costs of debt for the firm at different capital structures:
If the company were to recapitalize, debt would be issued, and the funds received would be used to repurchase stock. CoffeePlace is in the 20 percent corporate tax bracket, its beta is 1.0, the risk-free rate is 3 percent, and the market risk premium is 5 percent.
Consider capital structure effects (by identifying the ways in which capital structure can affect the weighted average cost of capital and free cash flows). Then discuss whether you agree with the following hypotheses and why:
1. Does the company’s debt policy create value to the firm?
2. Does the company’s debt policy create competitive advantage?
3. Does the company’s debt policy sustain senior management’s visions?
Answers
1) Yes company's debt policy create value for the firm.
2) Yes, company's debt policy creates a competitive advantage.
3) Yes, company's debt policy can sustain senior management's vision.
1. The company's debt policy can create value to the firm by reducing the cost of capital. By issuing debt, the company can take advantage of the tax deductibility of interest payments, which lowers the cost of debt. This can lower the weighted average cost of capital (WACC), which in turn can increase the value of the firm. However, the company must be careful not to take on too much debt, as this can increase the risk of financial distress and bankruptcy.
2. The company's debt policy can create a competitive advantage by allowing it to invest in projects with positive net present value (NPV) that may not have been possible with only equity financing.
By using debt financing, the company can take on more projects and potentially generate higher returns for shareholders. However, it is important to note that the company must be able to generate enough cash flow to cover the debt payments.
3. The company's debt policy can sustain senior management's visions by providing the necessary financing to pursue their strategic goals. By using debt financing, the company can invest in growth opportunities and expand its business. However, it is important for senior management to carefully consider the amount of debt the company can reasonably take on and ensure that it can generate enough cash flow to cover the debt payments.
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1
3. A document that indicated items issued to different people from the
store is called
A store receipt voucher
B store issuing voucher
C. store requisition
D.bin card
E. goods received book
Answers
Answer:
E
Explanation:
what three variables determine how much interest a person could earn from a savings account?
Answers
your current financial health, payment history, and debt obligations before
mr.marlon pays minimum wage to the cashiers in his store. if minimum wage is $7.25 per hour, how much does a cashier make who works 80 hours per week
Answers
Answer:
580
hour × rate
80 × 7.25
Project management isGroup of answer choicesa. only used on projects that are well planned.b. used all over the world to help organizations meet customer needs.c. used only on projects completed by teams external to the customer's organization.d. completed using one standard method.
Answers
Project management refers to managing customer communication and expectations by motivating project team members.
What do you mean by a project?A project refers to a collaborative enterprise that is carefully planned for achieving a particular aim.
Project management refers to those projects that are used all over the world to help organizations meet customer needs.
Therefore, B is the correct option.
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Concern for the environment among consumers causes consumers to substitute away from traditional autos to electric-powered autos.
Equilibrium quantity: Increases / Decreases
Equilibrium price: Increases / Decreases
Answers
Answer:
the equilibrium price and quantity of traditional autos decreases
the equilibrium price and quantity of electric cars increases
Explanation:
Due to the decrease in demand for traditional autos, there would be a leftward shift of the demand curve for traditional autos. As a result, equilibrium price and quantity would fall.
Due to the increase in demand for electric-powered autos, there would be a rightward shift of the demand curve for traditional autos. As a result, equilibrium price and quantity would increase.
Please check the attached images for graphical illustrations
Jamie is a purchasing agent for a company that manufactures shoes. She
has just submitted a purchase order to a supplier for more leather. Which
step of the purchasing process comes next?
A. Quality check
B. Requisition
C. Bid soliciting
O D. Shipping
Answers
Answer:
D. Shipping
Explanation:
Shipping refers to the activity of physically moving goods from one location to another. The goods could be moving from one store to another, from manufacturers to distributors, or from retailers to customers. Shipping is 'carrying goods' and hence a component of logistics.
After Jamie has prepared a submitted a purchase order, the next thing is to wait to receive the goods she ordered. Her supplier should ship the goods to her. The supplier can deliver the goods by themselves or use a logistics company.
Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?a) A state circuit court judgeb) A federal district court judgec) An administrative law judged) A panel of commissioners of the Federal Trade Commissione) The full commission of the Federal Trade Commission
Answers
An administrative law judged would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission.
What is Administrative law?Administrative law serves as the branch of our law that support the administrative agencies, with power so they can imposes certain requirements on them to be able to gives solutions to when there is wrongful administrative acts.
Federal Trade Commission can be considered as an agency here and that was why it can make an order requiring that Katie stop advertising and selling the pills.
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Why are file naming conventions essential?
A. So that data entry workers do not have to learn new systems with
every new position.
B. To make it easy to copy files for backup storage.
C. So that companies can easily share files with other companies.
D. Without everyone using the same system, it would be impossible
to know locate folders or files.
Answers
Answer:
D. Without everyone using the same system, it would be impossible
to know locate folders or files.
Explanation:
a series of equal, annual cash flows that are received at the end of each period is a(n): multiple choice regular annuity. annuity due. ordinary annuity due. ordinary annuity.
Answers
Option (d), A series of equal, annual cash flows known as an ordinary annuity are received at the conclusion of each period.
Can an ordinary annuity be defined as a sequence of equal payments made or received at the end of equal intervals?A typical annuity consists of regular payments made at the end of each period, such as monthly or quarterly installments. In contrast, payments for an annuity due are made at the beginning of each period. A due annuity would be something like monthly rent, whereas a regular annuity would be continuous quarterly stock dividends.
How long does the average annuity last?Basic Ordinary Annuity
The frequency of payments and compounding is the same, and payments are made at the end of the payment periods.The first payment is made one interval after the annuity begins.On the same day that the annuity expires, the final payment is made.Learn more about ordinary annuity: https://brainly.com/question/14963095
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On January 2, 2013, Gant Co. purchased a franchise with a useful life of five years for $60,000 and an annual fee of 1% of franchise revenues. Franchise revenues were $20,000 during 2013. Gant projects future revenues of $40,000 in 2014 and $60,000 per year for the following three years. Gant uses the straight-line method of amortization. What amount should Gant report as intangible asset-franchise, net of related amortization in its December 31, 2013, balance sheet
Answers
Answer:
$48,000
Explanation:
The computation of the amount that should be reported as the intangible asset franchise is shown below
= Purchase value of franchise - amortization per year
= $60,000 - ($60,000 ÷ 5 years)
= $60,000 - $12,000
= $48,000
hence, the amount that should be reported as the intangible asset franchise is $48,000
Gary has to stay late at the office to complete a project with an upcoming deadline. Furthermore, while he's working late, his boss emails him to inform him that the upcoming meeting for the project has been moved to the same time as his daughter's soccer game. Now Gary cannot attend his daughter's soccer game because of the work meeting. What kind of work-family conflict (WFC) is Gary experiencing
Answers
Answer:
time-based
Explanation:
From the question we are informed about Gary who has to stay late at the office to complete a project with an upcoming deadline. Furthermore, while he's working late, his boss emails him to inform him that the upcoming meeting for the project has been moved to the same time as his daughter's soccer game. Now Gary cannot attend his daughter's soccer game because of the work meeting. In this case, kind of work-family conflict (WFC) Gary is experiencing is Time-based.
Time-based conflict can be regarded as the conflict that comes up as a result of devoting a time for a role which makes it to be difficult to be able for someone to participate in role different from first role.