The best example of a well-stated, specific financial objective is to increase ROA (return on asset) by 0.5 percent annually. O maximize total company profits and return on investment. O achieve lower costs than any other industry competitor. gradually boost market share from 10 percent to 15 percent over the next several yea

The best example of a well-stated, specific financial objective is to increase ROA (return on asset) by 0.5 percent annually. O maximize total company profits and return on investment. O achieve lower costs than any other industry competitor. gradually boost market share from 10 percent to 15 percent over the next several yea

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8TP: Fenton, Inc., has established a new strategic plan that calls for new capital investment. The...

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

Question

**The best example of a well-stated, specific financial objective is to:**

- Increase ROA (return on asset) by 0.5 percent annually.
- Maximize total company profits and return on investment.
- Achieve lower costs than any other industry competitor.
- Gradually boost market share from 10 percent to 15 percent over the next several years.

*Selected option*:
- Gradually boost market share from 10 percent to 15 percent over the next several years.

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