Which of the Following Is True About a Star SBU

question 52

Multiple Choice

Which of the following is true about a star SBU?

• A) Star SBUs may barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs.
• B) Star SBUs provide the organization with large amounts of cash because their market is not growing significantly.
• C) An SBU that is a star has a small share of a high-growth market.
• D) An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
• E) Because the market of star SBUs is not growing significantly, the cash is generally used to meet the financial demands of the organization in other areas.

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