A Responsibility Center Whose Success Is Measured Not Only by Its

question 101

Short Answer

A responsibility center whose success is measured not only by its income, but also by relating that income to its invested capital

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Definitions:

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period.

Restatement (Second)

A collection of model legal rules and principles meant to clarify the common law in the United States, not binding but influential.

Law of Contracts

A set of laws that govern the formation, execution, and enforcement of agreements between parties.

Bilateral

Pertaining to or involving two sides, parties, or countries, often used in the context of agreements or contracts that require obligations from both parties.