A Market-Oriented Firm

question 11

Multiple Choice

A market-oriented firm:

• A)defines its mission in terms of the benefits its customers seek.
• B)targets the average customer.
• C)is highly centralized.
• D)defines its business in terms of the goods and services it produces.

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Definitions:

Investment Center

A business unit or segment within a larger corporation that is responsible for its own revenue, expenses, and investments, often evaluated on its return on investment.

Return on Assets

Return on Assets (ROA) is a financial ratio that indicates the profitability of a company relative to its total assets.

Profit Center

A segment or branch of a company that is responsible for generating its own revenues and profits, effectively treated as a separate entity for accounting purposes.

Contribution Margin

A financial metric that represents the amount of revenue from sales that exceeds variable costs, contributing towards covering fixed costs and profit.