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Question 15 Final Exam: Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions
Question 15 Final Exam: Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: These are the only divisions of the Terra Company as discussed in Question 13 and Question 14. The Terra Company's CEO likes to avoid sub-optimization. Should he prefer to use the performance measure Return on Investment (ROI) or Residual Income (RI) for each manager to avoid sub-optimization? Select one: a. Return on Investment (ROI) b. Residual Income (RI)
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