Which of the Following Is Part of the Principles Upon

question 44

Multiple Choice

Which of the following is part of the principles upon which SBUs are based?

• A)Each business unit serves no more than three product market segments.
• B)The strategy is defined at the corporate level.
• C)The strategy may be inconsistent with overall organisational needs.
• D)Each serves its own customers with its own products and services.
• E)The total portfolio is managed to serve the interest of the unit as a whole.

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Definitions:

Total Assets

The sum of all current and noncurrent assets owned by a business, reflecting its overall resources.

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out (LIFO) method and its cost calculated under the First-In, First-Out (FIFO) method.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor expenses.