Define 'Investment Centre. Why are investment centres established? Describe the different overall measures of effectiveness for determining the performance of investment centres and discuss their relative merits and demerits.

An Investment Centre is a type of responsibility centre in an organization where the manager has control over both revenues and expenses, along with the authority to make decisions related to capital investments. Unlike other centres such as cost centres or profit centres, the investment centre is responsible for the management of assets and for generating returns on those assets. The performance of an investment centre is typically measured by evaluating the return on investment (ROI), residual income (RI), or economic value added (EVA). The investment centre model is designed to provide managers with the autonomy to make decisions that influence both the financial outcomes and long-term growth of the business.

Investment centres are established to provide a more comprehensive assessment of a business unit’s performance, especially when there is significant autonomy in terms of decision-making. The ___ _______ ___ ________ _____ _____ ______ _________.
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