The risk that interest income will increase at a slower rate than interest expense is

Ewan Logistics provides the following information

Operating income $1,500,000 Net sales $14,500,000 Average total assets $1,950,000 Management's target rate of return 20% What is the company's residual income? A) $(450,000 ) B) $390,000 C) $1,650,000 D) $1,110,000

Which of the following statements is true regarding choosing offensive strategic market plans?

A) A business with a good cash position that is facing stagnant growth in maturing markets might pursue the market penetration strategy. B) A market-based business will often find that it has more resources to fund market opportunities than there are market opportunities. C) A business with a long-run need for better profit performance would be inclined to select the share penetration strategy. D) The selection of one offensive strategic market plan over another depends on the business's long-run profit needs. E) A business has to prioritize strategic market opportunities on the basis of its performance objectives.