A Subgroup of a Single Business or a Collection of Related

question 85

Multiple Choice

A subgroup of a single business or a collection of related businesses within the larger organization is called a(n) :

• A) conglomerate
• B) joint venture
• C) strategic business unit (SBU)
• D) oligarchy
• E) strategic alliance

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Definitions:

Profitability Ratio

A class of financial metrics that are used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Solvency Ratio

Financial metrics used to evaluate a company's ability to meet its long-term debt and other obligation by comparing its assets to its liabilities.

Profit Margin

A financial metric that measures the amount of net earnings a company makes as a proportion of its sales.

Return On Common Stockholders' Equity

A measure of the profitability of a corporation in terms of the returns generated on the equity investment of the common shareholders.