State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Question

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Answer 1

Question

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

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Answer 2

Question

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

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Answer 3

Question

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

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Answer 4

Question

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

Answer 6

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.

Answer 7

Chapter 19, Problem 1Q

To determine

State the term investment center, and explain the manner of measuring the financial performance of investment centers.

Answer 8

Expert Solution & Answer

Explanation of Solution

Investment center: The manager of investment center is held accountable for the profit of sub-unit and the return earned on capital invested which is used by the sub-unit to generate its profit.

The profit per dollar financed can be related to the rate of return for alternative investments. Normally rate of return is calculated by taking the ratio of the profit amount divided by the invested amount in the business unit.