Which of the Following Subunits Is Most Likely to Be

question 123

Multiple Choice

Which of the following subunits is most likely to be considered an investment center?

• A) Accounting department.
• B) Assembly department.
• C) Petrochemical division.
• D) Research and development department.

---

Definitions:

Capital Account Balance

The amount recorded in a company's capital account, representing the net worth or equity of the owners in the business.

Partnership Capital

The total amount invested by all partners in a partnership, representing their ownership interest.

Income-sharing Ratio

The pre-agreed proportion in which partners or stakeholders share the generated income or losses.

LLP

A legal structure for a business that provides the owners with limited liability protection, typically used by professional services firms.