In an Investment Center, the Manager Has the Responsibility for and the Authority

question 163

Multiple Choice

In an investment center, the manager has the responsibility for and the authority to make decisions that affect:

• A) the assets invested in the center, but not costs and revenues
• B) costs and assets invested in the center, but not revenues
• C) both costs and revenues for the department or division
• D) not only costs and revenues, but also assets invested in the center

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Definitions:

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the proportion of assets financed with debt.

TIE

Times Interest Earned, a financial ratio that measures a company's ability to meet its debt obligations based on its current income.

Operating Costs

The day-to-day expenses involved with running a business, excluding costs associated with production.

Assets

Resources owned or controlled by an entity with expected future economic benefits.