A Unit of a Business That Not Only Incurs Costs

question 142

Multiple Choice

A unit of a business that not only incurs costs, but also generates revenues, is called a:

• A) Performance center.
• B) Profit center.
• C) Cost center.
• D) Responsibility center.
• E) Expense center.

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Definitions:

Contract

A contract is a legally binding agreement between two or more parties that outlines obligations, rights, and duties each party has agreed to.

Breach Of Fiduciary Duty

A failure to act in the best interest of someone to whom a duty of care is owed, often seen in financial and legal relationships.

Director

A member of a group of persons chosen to govern the affairs of a corporation, company, or other entity, responsible for making major policy and financial decisions.

Pre-Incorporation

Describes agreements, actions, or commitments made on behalf of a corporation before its official legal formation.