Global Structures Have Grown Out of Competitive Necessity

question 28

True/False

Global structures have grown out of competitive necessity.

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Definitions:

Investment Center

An investment center is a business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and its performance is often evaluated based on return on investment (ROI) or other profitability ratios.

Profit Center

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Direct Expenses

Costs that can be directly traced to a product, service, or activity without any need for allocation.

Profit Center

A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.