All of the Following Are Advantages of a Strategic Business

question 54

Multiple Choice

All of the following are advantages of a strategic business unit (SBU) type of organizational structure, except

• A) divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
• B) divisional executives can respond quickly to market changes and opportunities.
• C) planning and control by the corporate office is more manageable.
• D) the corporate office is more removed from the individual divisions.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities; represents the ownership interest of shareholders or owners.

Assets

Resources owned or controlled by a business that are expected to bring future economic benefits.

Accrual Basis

An accounting method where transactions are recorded when they occur, regardless of when cash is exchanged, focusing on economic events rather than cash flow.

Ledger

A book or collection of financial accounts where double-entry bookkeeping transactions are recorded, including assets, liabilities, revenue, and expenses.