A Responsibility Center Is a Part, Segment, or Subunit of an Organization

question 147

True/False

A responsibility center is a part, segment, or subunit of an organization, whose manager is accountable for a specified set of activities that impact revenues, costs, or profits and in the case of an investment center, profits.

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Definitions:

Total Value

The sum of all monetary values of goods, services, or assets.

Initial Public Offering

The first sale of stock by a company to the public, marking the transition from private to public company.

Public Company

A corporation whose shares are publicly traded on stock exchanges, allowing investors to buy and sell shares.

Stock Exchange

A regulated market where securities, such as stocks and bonds, are bought and sold.