The Responsibility Report of Alejandro Garcia,the Manager of One of the Divisions

question 55

Multiple Choice

The responsibility report of Alejandro Garcia,the manager of one of the divisions of an auto parts manufacturing company,includes profits as well as return on investment and residual income.Alejandro is most likely the manager of a(n) ________.

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

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company.

Firm's Assets

All items of value owned by a company, such as cash, equipment, and intellectual property.

Call Option

An economic deal that permits the buyer to have the option to acquire a stock, bond, commodity, or another asset at a predetermined price during a designated period, without being obligated to do so.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specific time.