Question
When managers are evaluated on residual income, rather than on return on investment (ROI), they will be Blank______ likely to pursue projects that will benefit the entire company.
Multiple choice question.
equally
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Multiple choice question.
equally
less
more
Answers
GPT-4o mini
When managers are evaluated on residual income, rather than on return on investment (ROI), they will be **more** likely to pursue projects that will benefit the entire company.
This is because residual income focuses on the total profit generated in excess of the required return on investment, encouraging managers to consider investments that might have a lower ROI but still add value to the company as a whole.
This is because residual income focuses on the total profit generated in excess of the required return on investment, encouraging managers to consider investments that might have a lower ROI but still add value to the company as a whole.