A Unit of an Organization Is Referred to as an Investment

question 66

Multiple Choice

A unit 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 the 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.

---

Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting by businesses and governments, which may not align with the calendar year.

Dishonored Note

This term refers to a promissory note that has not been paid at maturity by the maker, resulting in default.

Interest for Days

Calculated as the interest rate on a loan or investment applied over a specified number of days.

Total Amount Charged

The total amount charged refers to the aggregate sum of all charges, fees, and expenses associated with a transaction or series of transactions.