Within a Business Organisation, a Profit Centre That Is Self-Supporting

question 85

Multiple Choice

Within a business organisation, a profit centre that is self-supporting in terms of sales, markets, production and other resources is known as a:

• A)profit entity.
• B)strategic business unit.
• C)marketing program.
• D)small business.
• E)diversified corporation.

---

Definitions:

Return On Investment (ROI)

A financial ratio used to measure the profitability of an investment, calculated by dividing the net profit from the investment by its initial cost.

Residual Income

The income that remains after deducting all required costs of capital and operating expenses from net income.

Margin

A financial metric that measures the amount by which revenue from sales exceeds costs in a business, usually presented as a percentage of revenue.

Maintenance Department

A division within a company responsible for maintaining equipment, facilities, and systems in working order.