Return on capital employed (ROCE) can be a useful measure of divisional performance. For which of the following types of company is ROCE likely to be most appropriate?

Return on capital employed (ROCE) can be a useful measure of divisional performance. For which of the following types of company is ROCE likely to be most appropriate?
A . Companies in which there is extensive investment in intellectual property and intangible assets, such as brands and trade marks.
B . Companies in which there is extensive investment in physical assets, such as plant and machinery, with divisions which undertake broadly similar activities.
C . Companies which have been created by extensive acquisition and merger activity and include divisions engaged in a variety of activities.
D . Companies in the not-for-profit sector.

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Answer: B