The return on investment measure of performance: relates dividends paid to the entity's assets. is calculated by dividing average assets for a period by the amount of net income for the period. is never as important a measure of management effectiveness as the amount of net income. is calculated using net income as the amount of return.

Cadillac's portfolio consists of sedans, a crossover, a sport utility vehicle, and a high-performance version of the sedan. the sedans are sold through the cadillac dealer network, but the high-performance version is sold in limited volumes and is not available at all dealers. this difference in availability is an example of how the products within the cadillac portfolio are differentiated by the