Asked by Miquan Patton-Martin on May 01, 2024

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A distinguishing characteristic of an investment center is that

A) revenues are generated by selling and buying stocks and bonds.
B) interest revenue is the major source of revenues.
C) the profitability of the center is related to the funds invested in the center.
D) it is a responsibility center which only generates revenues.

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investments.

Revenues

The total income generated from normal business operations, before any expenses are deducted.

Profitability

Refers to a company's ability to generate earnings over its costs and expenses.

  • Comprehend the function and assessment of investment centers within a corporation.
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SH
Syatti HasyyatiMay 03, 2024
Final Answer :
C
Explanation :
An investment center is a responsibility center that generates its revenues through investments. The profitability of an investment center is related to the funds invested in it. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they do not appropriately describe the characteristics of an investment center.