The rate of return generated by an investment centre's assets is called:
A) residual income.
B) economic value added.
C) return on investment.
D) segment margin ratio.

Question

Quizplus · Accepted Answer

The rate of return generated by an investment centre's assets is called return on investment (ROI). Residual income and economic value added are both alternative performance measures that take into account the cost of capital, while segment margin ratio is a measure of profitability for a particular business segment. However, none of these options directly refer to the rate of return generated by an investment centre's assets.

The Rate of Return Generated by an Investment Centre's Assets