A Profit Center Manager

question 15

Multiple Choice

A profit center manager:

• A)does not have the ability to produce revenue.
• B)may be involved with the sale of new marketing programs to clients.
• C)would normally be held accountable for producing an adequate return on invested capital.
• D)often oversees divisional operations.
• E)may be the manager who oversees the operations of a retail storE.

---

Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright in the company.

Liabilities

Financial obligations a company owes to outside parties.

Assets

Resources owned by a business which are expected to provide future economic benefits, such as cash, inventory, property, and equipment.

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.