In deciding the investment base for evaluating managers of investment centers, the general question is: What practices will motivate the district managers to use their assets most efficiently and to acquire the proper amount and kind of new assets? Presumably, when his return on assets is being measured, the district manager will try to increase his ROA, and we desire that the actions he takes toward this end be actions that are in the best interest of the whole corporation. Given this general line of reasoning, evaluate the way Quality computes the “investment base” for its districts. For each asset category, discuss whether the basis of measurement used by the company is the best for the purpose of measuring districts’ return on assets. What are the likely motivational problems that could arise in such a system? What can you recommend to overcome such dysfunctional effects?