What is meant by the term investment center how is the

Question

1. What is meant by the term investment center? How is the financial performance of investment centers measured?

2. What are the three financial-performance measures for investment centers?

3. What is return on investment, and how is it calculated?

4. What are the measurement issues to consider when using return on investment (ROI)?

5. What are the advantages and limitations of return on investment (ROI) as a performance measure?

6. What is meant by the arm's-length standard, and for what is it used?

Answer 1

In a word document paper, answer the following finance questions in Times New Roman font using the APA guidelines. Q1. What do you meant by the word investment center? Explain how is the financial performance of investment centers evaluated? Q2. Write down the three financial-performances evaluates for investment centers? Q3. Determine return on investment and explain how is it computed? Q4. Write down the measurement issues to consider when employing return on investment (ROI)? Q5. Illustrate the merits and demerits of return on investment (ROI) as the performance measure? Q6. What do you meant by the term arm's-length standard and for what is it employed?