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.

Question

Quizplus · Accepted Answer

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.

A Distinguishing Characteristic of an Investment Center Is That