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Unformatted text preview: Multiple Choice Quiz (See related pages) Choose the best answer 1 Which of the following is a strategic role of an investment SBU? A) to motivate managers B) to provide the incentive for managers C) to determine fairly the rewards earned by managers D) All of the above. 2 Which of the following is NOT a method for developing or estimating the current market value of assets? A) Gross Book Value. B) Replacement Cost. C) Liquidation Value. D) Economic Value Added. USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 3 THROUGH 7: Hickory Company had the following information pertaining to 2007: Profit $50,000 Sales $500,000 Asset Turnover ratio 2 times The desired minimum rate of return is 15 percent. 3 What is the ROI? A) 10% B) 5% C) 20% D) 15% 4 What is the return on sales? A) 5% B) 10% C) 15% D) 20% 5 What is the amount of assets? A) $125,000 B) $250,000 C) $500,000 D) $1,000,000 6 The manager of Hickory is paid a bonus based on ROI. Would the manager invest in a project that will pay a return on investment of 18 percent?...
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- Fall '11