Which of the Following Statements Regarding Investment Centers Is Incorrect

question 44

Multiple Choice

Which of the following statements regarding investment centers is incorrect?

• A) A manager of an investment center is responsible for the investment of capital,but not revenues or expenses.
• B) Investment centers are commonly found at the higher levels of an organization chart.
• C) A manager of an investment center should be accountable for assets,liabilities,earnings.
• D) Return on investment and residual income are tools used to assess managers of an investment center.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a product for and the actual amount they do sell it for.

Consumers Surplus

The gap between the aggregate sum consumers are ready and capable of paying for a good or service versus what they actually shell out.

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to a change in price.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.