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Setting up New Divisions in Businesses

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The CEO of Always Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets AND that Always Round's quality reputation will be transferred to the batteries.

Should he set up the new division as a Revenue Center, as a Profit Center, or as an Investment Center?

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Solution Summary

This solution provides a discussion about whether a company should set up a new division, and what type it should be.

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The CEO of Always Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets AND that Always Round's quality reputation ...

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