An investment centre is a strategic business unit or division within an organization that is responsible not only for generating revenues and controlling costs but also for making decisions regarding the use of assets and investments. Unlike cost centres, which focus only on controlling expenses, or profit centres, which focus on revenue and cost control, investment centres are evaluated based on their ability to generate returns on the assets or capital allocated to them. The manager of an investment centre is empowered to make significant decisions about investment in assets, expansion of operations, and resource allocation, in addition to managing day-to-day operating costs and revenues. This broader responsibility makes investment centres a critical part of decentralized management systems, allowing top management to monitor performance while granting autonomy to divisional managers. Investment centres are established for several reasons. First, they promote decentralization of decision-making, enabling divisional managers to act as entrepreneurs within the organization. By granting responsibility for investment decisions, organizations can tap into the expertise and motivation of managers who are closer to the operations and markets. Second, investment centres encourage a more objective evaluation of managerial performance by considering not only profitability but also the efficient use of resources and capital. Third, they provide a framework for comparing the performance of different divisions, which can guide strategic decisions such as resource allocation, investment prioritization, and potential restructuring. Fourth, investment centres foster accountability, as managers are held responsible for both financial outcomes and the effective use of capital under their control. Finally, establishing investment centres aligns managerial incentives with organizational objectives, ensuring that managers focus on long-term profitability and sustainable growth rather than short-term cost-cutting or revenue maximization. The performance of investment centres is evaluated using overall measures of effectiveness that integrate both profitability and investment efficiency. One of the most common measures is Return on Investment (ROI), which is calculated as the ratio of operating profit to the assets employed in the division. ROI provides a clear indicator of how efficiently a division is using its resources to generate earnings. Its merits include simplicity, ease of computation, and comparability across divisions and time periods. Managers can readily understand ROI and relate it to financial objectives, making it a widely used tool in performance evaluation. However, ROI also has limitations. It may encourage short-termism, as