Investment Center Evaluation: Formula & Residual Income


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question 1 of 3

What is residual income?

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1. How do investment centers differ from a profit centers?

2. Which of these is the most common method to evaluate an investment center?

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About This Quiz & Worksheet

The questions provided on this quiz will check your understanding of terms and concepts of evaluating investment centers. Find out for yourself if your knowledge level is satisfactory or if you need to do something to bolster it.

Quiz & Worksheet Goals

The quiz will test you on such things as:

  • Residual income
  • Common evaluation methods for an investment center
  • The ROI formula

Skills Practiced

The student will use this quiz and worksheet to test skills like:

  • Reading comprehension - ensure that you draw the most important information from the evaluating investment centers lesson
  • Interpreting information - verify that you can review information regarding an investment center versus a profit center and interpret it correctly
  • Knowledge application - use your knowledge to identify the best residual incomes for a business

Additional Learning

More on this subject is available by reviewing the lesson called Investment Center Evaluation: Formula & Residual Income. The lesson will provide additional information on:

  • Responsibility centers
  • How to know if you are doing well
  • The role of assets in evaluation