Asked by Miquan Patton-Martin on May 01, 2024
Verified
A distinguishing characteristic of an investment center is that
A) revenues are generated by selling and buying stocks and bonds.
B) interest revenue is the major source of revenues.
C) the profitability of the center is related to the funds invested in the center.
D) it is a responsibility center which only generates revenues.
Investment Center
A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investments.
Revenues
The total income generated from normal business operations, before any expenses are deducted.
Profitability
Refers to a company's ability to generate earnings over its costs and expenses.
- Comprehend the function and assessment of investment centers within a corporation.
Verified Answer
Learning Objectives
- Comprehend the function and assessment of investment centers within a corporation.
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