The Convenience Store That Is Responsible for Its Own Revenues

question 25

Multiple Choice

The convenience store that is responsible for its own revenues, costs, and is owned by a national convenience store chain may be classified as a(n)

• A)cost center.
• B)investment center.
• C)revenue center.
• D)profit center.

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Definitions:

Growth Rate

The rate at which a company's sales, earnings, or other chosen financial indicator increases over a period of time.

Market Risk Premium

The additional return expected by an investor for holding a risky market portfolio instead of risk-free assets.

Risk-Free Rate

The hypothetical yield on a risk-free investment, often exemplified by state-issued bonds.

Cost Of Equity

The return that a company must offer investors to compensate for the risk of investing in its shares.