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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?

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