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:

Exocrine

Glands that secrete their products through ducts either out of the body or into the digestive system, unlike endocrine glands, which secrete hormones directly into the blood.

Possesses Ducts

Refers to glands or organs that have tube-like structures to convey their secretions to other locations.

Endocrine

Relating to glands that secrete hormones directly into the bloodstream to regulate the body's processes.

Holocrine

A type of glandular secretion where the entire cell disintegrates to release its substances, such as in sebaceous glands.