Survey of Innovation and Business Strategy
Profit center of enterprise, category
Profit center refers to a branch or division of a company that directly adds or is expected to add to the bottom-line profitability of the entire organization. It is treated virtually as a separate, standalone business, responsible for generating its revenues and earnings; its profits and losses are calculated separately on accounting balance sheet.
Enterprise refers to the highest level of the Business Register statistical hierarchy. In alignment with the System of National Accounts, it is defined as an institutional unit that directs and controls the allocation of resources relating to its operations, and for which financial statements are maintained from which international transactions, an international investment position and a financial position for the unit can be derived. Enterprises can be corporations, quasi-corporations, institutions, or unincorporated businesses such as sole proprietors or partnerships. For incorporated enterprises, financial statements can be consolidated.