A Multidivisional Corporation Like GE Would Tend to Use What

question 4

Multiple Choice

A multidivisional corporation like GE would tend to use what type of responsibility center?

• A) expense center
• B) investment center
• C) profit center
• D) standard cost center
• E) revenue center

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Definitions:

Interest

The cost of borrowing money or the payment received for depositing money, usually expressed as a percentage of the principal over a period of one year.

Simple Interest Rate

The percentage of interest calculated only on the principal amount, not including any interest from previous periods.

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating a future return or profit.

Interest

The expense associated with taking out a loan, usually conveyed as a yearly percentage of the total loan value.