When Properly Created, a Strategic Business Unit (SBU)

question 87

Multiple Choice

When properly created, a strategic business unit (SBU) :

• A)has a specific target market.
• B)plans collaboratively with other SBUs of the company.
• C)has no competitors.
• D)shares the mission of its parent company.

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Definitions:

Variable Costs

Expenditures that change in direct response to production volumes, such as direct labor and raw materials.

Variable Food Costs

Variable food costs change with the level of production or sales, such as the cost of ingredients for a restaurant.

Performance Evaluation

The process of assessing the efficiency and effectiveness of employees, departments, or organizations, often for the purpose of making decisions related to promotions, compensations, and training.

Other Departments

A general term that refers to various separate units or divisions within a company, each responsible for specific functions or operations not specified by previous terms.