Which Statement Is True

question 9

Multiple Choice

Which statement is true?

• A) An investment center is responsible for revenues and expenses as well as earning a return on assets.
• B) An investment center is only responsible for its investments.
• C) An investment center is only responsible for revenues and expenses.
• D) A profit center is evaluated using contribution margin while an investment center is evaluated using ROI.

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Definitions:

Threatens

To express an intention to inflict pain, injury, damage, or other hostile action on someone in retribution for something done or not done.

Bureaucracies

Organized administrative systems governed by a set of rules and regulations, typically within large organizations or governments, to ensure efficiency and effectiveness.

Alienation

A feeling of isolation or estrangement from oneself, others, or society, often resulting in disenchantment or disconnection.

Roles, Rules

The prescribed behaviors and expectations associated with specific positions in social structures, and the formal and informal guidelines governing behavior.