Companies Evaluate Investment Center Performance the Way They Evaluate Profit

question 226

True/False

Companies evaluate investment center performance the way they evaluate profit center performance.

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Definitions:

Cash

Physical currency owned by a company or individual, including bank notes and coins, often considered the most liquid form of asset.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Dividend Declaration

The announcement by a company's board of directors of a payment to shareholders, distributed from its earnings.

Retained Earnings

What remains of the company's net earnings after dividend payments to shareholders have been made.