Select the correct option: 1) Long-term investments are made by the manager of an investment division for
Question:
Select the correct option:
1) Long-term investments are made by the manager of an investment division for the purpose of:
A) Increasing profits.
B) Decreasing profits.
C) Increasing interest liability.
D) Decreasing debt liability.
2) Which of the following is a disadvantage of decentralization?
A) Increases the customer response time
B) Only the top management is allowed to make decisions
C) De-motivates employees as the decision making powers are not delegated
D) Problems in achieving goal congruence
3) Which of the following would most likely be evaluated using residual income?
A) Cost center
B) Profit center
C) Revenue center
D) Investment center
4) Brad, one of the managers of a multi-national company, is responsible to generate revenues and control costs in order to increase the operating income of his division. However, he is not concerned with investment-related decisions. Brad is most likely to be the manager of a (n):
A) Cost center.
B) Investment center.
C) Profit center.
D) Revenue center.
5) The responsibility report of Keith Paul, a manager of one of the divisions of a manufacturing company, includes profits as well as return on investment and residual income. Keith is most likely to the manager of a (n):
A) Investment center.
B) Profit center.
C) Cost center.
D) Revenue center.
A Survey of Mathematics with Applications
ISBN: 978-0134112107
10th edition
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde