Give me an example of a cost center, a profit center, and an investment center for FedEx?
center
McDonald Investment Center was created in 1969.
Investment Banking Center was created in 2003.
To monitor,and make accountable, the management team for that Cost/Profit/Investment center.
cost center investment center profit center revenue center
Cost centers - http://en.wikipedia.org/wiki/Cost_center Profit center - http://en.wikipedia.org/wiki/Profit_center Investment center - http://en.wikipedia.org/wiki/Investment_center
An investment center helps to advice customers on the importance of investing and provides advice on investments. The disadvantage is that it can lack inconsistency across all the divisions.
Kindly refer any book for the answer
The term investment center is used for business units that is within an enterprise. It must be treated as a unit that is measured against capital. Cost center is a department unit that is within an organization in which costs may be charged for accounting purposes.
One example of venture capital is taking a $1M investment and selling half your company. The value the investment is $2M.
A financial investment would be when a monetary investment is made. A non-financial investments is a non-monetary investment, for example, donating time and energy.