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which of the following is a profit center in a multi-national company? A) its European subsidiary...

which of the following is a profit center in a multi-national company?

A) its European subsidiary

B) production factory

C) accounting department

D) one store under its franchise

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Answer #1

The answer to the question is D. One store under its franchise.

A profit center is said to be an individual branch or a division of a company that directly responsible for generating separate revenue for the company.

Given options are a) A European subsidiary, which is a different company, b) production factor, a cost center (opposite of profit center and c) accounting department, which does not generate any revenue but book revenue and expense of every other department.

Hence, Option D is the answer.

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