If a company contains a number of investment centers of differing sizes, return on investment (ROI) should be used rather than residual income to rank the financial performance of the divisions.

Which of the following statements is true with regards to the political cost hypothesis?

A) Political costs arise as a result of an entity's relationships with shareholders and lenders.
B) Managers of financial institutions may prefer to increase profits to reduce government pressure to pass on interest rate cuts.
C) Smaller entities are more likely to be the target of environmental groups.
D) Managers of entities that are more politically visible are expected to choose accounting policies that reduce profit in order to avoid political costs.

Which of the following statements is true of human resource management (HRM) in modern organizations?

A) HRM is exclusively concerned with structuring jobs to maximize efficiency.
B) HRM is responsible for promoting ethnocentrism in the workplace.
C) Modern organizations outsource all HR functions.
D) Line managers often make decisions about pay raises and promotions.

Darrell has just started working in China. His first observation is that the word "we" and "us" are used a lot in conversations and meetings. This illustrates what type of attitude?

A) collectivist
B) power sharing
C) individualistic
D) team work
E) group effort

The offering includes which of the following?

A) the investment
B) the customer value proposition
C) the market segment
D) the return on investment

In a flextime program, employees choose when they will arrive and depart within specified limits.

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

A) normal good.
B) complementary good.
C) luxury.
D) inferior good.

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.