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:

Lose-lose Situation

A situation where all parties involved suffer a loss or negative outcome, often due to conflict or competition.

Bargaining Climate

The environment or conditions under which negotiation or bargaining occurs, including attitudes, relationships, and the surrounding context.

Verbal Negotiation Tactics

Strategies used in dialogue to persuade or influence an opposing party to reach a desirable outcome or agreement.

Warning

A statement or event that indicates a possible or impending danger, problem, or other unpleasant situation.