Decentralized ﬁrms can delegate authority by structuring an organization into responsibility centers.Which of the following organizational segments is most like a totally independent, standalone business where managers are expected to "make it on their own"?
A)Cost center.
B)Revenue center.
C)Proﬁt center.
D)Investment center.
E)Contribution center.

Question

Quizplus · Accepted Answer

An investment center is most like a standalone business because its managers have control over revenues, costs, and investments in assets, and they are responsible for generating returns on those investments, similar to running an independent business.

Decentralized ﬁRms Can Delegate Authority by Structuring an Organization into Responsibility