A Financial Asset Is Considered a Security If

question 252

Multiple Choice

A financial asset is considered a security if

• A)the owner of the security receives dividends and realizes a capital gain when the asset is sold.
• B)it can be sold in a secondary market.
• C)its value increases after it is sold in a primary market.
• D)its value is secure; that is,the owner will not suffer a financial loss when the asset is sold.

Differentiate between various types of decentralized units and understand their implications for managerial authority and responsibility.

Understand the concept and calculation of return on investment (ROI) and its components.

Calculate and interpret the profit margin and investment turnover.

Understand the role and responsibilities of managers in investment centers.

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Definitions:

Machine Division

A specialized segment within a manufacturing operation focused on the use of machines for production purposes.

Logistics Department

The division within a company responsible for the management of the movement of goods and services from suppliers to customers.

Operating Divisions

Distinct segments within a company, each responsible for certain operations or business units.

Fixed Costs

Outlays that do not fluctuate with production or sales figures, such as office rent, salary payments, and insurance policies.