1. The recent economic downturn has convinced Marshall Clothing Stores Inc. to initiate risk management practices and to locate this activity in a new department that reports directly to the chief financial officer (CFO). The objectives of risk management are to identify significant new risks that could potentially affect the company in the coming1 to 5 years and to develop plans for adapting to the risk. For example, the company is concerned about the rapidly increasing inventories in certain departments of its stores, due to an unexpected decrease in demand in these areas. The company faces losses on selling these items at a discount.

In this practice problem I am supposed to identify and explain whichresponsibility center it is and I believe it's a profit SBU, but for this problem I am uncertain of which SBU it is and why?

Answer rating: 100% (QA)

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