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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Definitions:

Natural Law

A belief system that claims specific rights or values are intrinsic to human nature and universally recognizable through the use of human intellect.

Relative Ethics

The belief that moral standards are influenced by and can only be understood in relation to the specific social, cultural, or individual context.

Legislation

Laws that have been enacted by a governing body or the process of making or enacting laws.

Divine Command Theory

A theory suggesting that morality is determined by God's commands, and what is morally right is what God has decreed.