Examlex
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Residual Income
Represents the amount of income that an investment generates above the minimum rate of return.
Operating Assets
Assets used in the day-to-day operations of a business that are essential for generating revenue, excluding investments and non-operational assets.
Minimum Required Return
The smallest return on investment that an investor is willing to accept, considering the risk associated with the investment.
Cost Center
A department or segment within a company where costs can be allocated, but that does not directly contribute to profit, primarily used for budgeting and control purposes.
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