Strategic Business Units

question 10

Multiple Choice

Strategic business units:

• A)are primarily alliances with other competitive firms aimed at new markets
• B)are components of a firm engaged in multiple industries or businesses
• C)adapt the same growth objectives and competitive strategies as other SBUs
• D)are business units that always focus on competing within their industry

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Definitions:

Perfectly Competitive

A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and every company is a price taker.

Total Cost

The total expense of manufacturing, comprising both constant and fluctuating costs.

Market Price

The cost at which a product or service is made available in the market, dictated by the forces of supply and demand.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profit beyond the normal return on investment.