A Business Condition That May Assist Forecasting but Add to the Complexity

question 5

Multiple Choice

A business condition that may assist forecasting but add to the complexity of change is:

• A) consulting with professional groups about change.
• B) researching about trends on futuristic sites.
• C) asking patients to examine options for change.
• D) building profit projects and sustainability into planning.

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Definitions:

Residual Income

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

Investment Centers

Segments within a company for which managers have responsibility over cost, revenue, and investment decisions.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.