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Perry Corporation Is Composed of Three Operating Divisions Division A  \text {\underline{Division A } }

Question 186

Multiple Choice

Perry Corporation is composed of three operating divisions.Overall,the Perry Corporation has a return on investment of 20%.Division A has a return on investment of 25%.If Perry Corporation.evaluates its managers on the basis of return on investment,how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%?
Division A  \text {\underline{Division A } }                         Perry Corporation President  \text {\underline{Perry Corporation President } }
Manager  \text {\underline{Manager } }


A) accept accept
B) accept reject
C) reject accept
D) reject reject

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