A Segment of an Organization Is Referred to as an Investment

question 5

Multiple Choice

A segment of an organization is referred to as an investment center if it has:

• A) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply.
• B) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital.
• C) Authority to make decisions over the most significant costs of operations, including the power to choose sources of supply.
• D) Authority to provide specialized support to other units within the organization.
• E) Responsibility for developing markets for and selling the output of the organization.

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Definitions:

Information-Intensive

Describing a task, process, or industry that relies heavily on the processing and analysis of large volumes of information.

Insignificant Activity

An action or task that has little to no impact on the overall outcome or goal.

Initial Source

The original starting point or origin from which information or materials are derived.

Newspapers

Printed publications, usually issued daily or weekly, carrying news, feature articles, advertisements, and other information of public interest.