An Operating Unit That Is Responsible for Revenues Only Is

question 86

Multiple Choice

An operating unit that is responsible for revenues only is commonly referred to as a(n) :

• A) expense center.
• B) revenue center.
• C) profit center.
• D) asset center.

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Definitions:

Required Return

The return a investor needs on an investment to compensate for the risk of the investment.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.

Expected Decline Rate

The anticipated rate at which a value, such as stock price or economic indicator, is projected to decrease over a specified period.

P/E Ratio

The price-to-earnings ratio, a valuation metric that compares the current share price of a company to its per-share earnings, used to evaluate if a stock is over or undervalued.