A Revenue Center Manager

question 16

Multiple Choice

A revenue center manager:

• A) does not have the ability to produce revenue.
• B) may be involved with the sale of new marketing programs to clients.
• C) would normally be held accountable for producing an adequate return on invested capital.
• D) often oversees divisional operations.
• E) may be the manager who oversees the operations of a retail store.

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Definitions:

Physical Capital

Physical capital includes tangible assets such as buildings, machinery, and equipment that are used in the production of goods and services.

Productive Investment Opportunities

Investments that potentially lead to an increase in productive capacity and economic growth.

Perfect Knowledge

A hypothetical situation where all parties in a market have complete and accurate information about the market conditions and the goods or services involved.

Competitive Markets

Competitive markets are characterized by many buyers and sellers, where no single entity has the power to significantly influence prices for goods and services.