Division A's investment in a new project will raise the overall organization's return on investment if
A :
A)the return on investment on the new project exceeds the target return of the overall organization.
B)the return on investment on the new project exceeds the return on investment of Division
C)the return on investment on the new project exceeds the overall organization's return on investment.
D)Division A's return on investment exceeds the return on investment of the overall organization.

Question

Quizplus · Accepted Answer

Division A's investment will only raise the overall organization's return on investment if the return on investment on the new project exceeds the overall organization's return on investment. Option A is incorrect because it only considers the target return of the organization, which may not necessarily reflect the actual return. Option B is incorrect because it only compares the new project's return on investment to another division's return on investment, which is irrelevant. Option D is incorrect because it only compares Division A's return on investment to the overall organization's return on investment, which doesn't account for the impact of the new project. Therefore, the best choice is C.

Division A's Investment in a New Project Will Raise the Overall