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Consider the two business units below. Which business is most likely to have growth capital initiatives approved? Revenue EBIT Total Assets Current Liabilities Capital
Consider the two business units below. Which business is most likely to have growth capital initiatives approved? Revenue EBIT Total Assets Current Liabilities Capital Employed Return on Capital Employed Business Unit 1 Business Unit 2 tA $ 45,541 $ 10,637 $ 9,769 A $ 2,686 $ 84,284 $ 8,486 A 21,147 $ 2,314 A $ 50,510 $ 4,938 19% 54% O Business unit #1 because its revenues are higher Business unit #1 because its operating profits (EBIT) are higher Business unit #2 because its revenues are smaller and it has more room to grow O Business unit #2 because its return on capital employed is higher
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