Which of the Following Is True of a Strategic Business

question 68

Multiple Choice

Which of the following is true of a strategic business unit?

• A) A strategic unit directly adopts the mission of its parent organization.
• B) Each strategic unit depends on plans of the other units in the organization.
• C) A strategic unit has its own managers, resources, objectives, and competitors.
• D) A strategic unit is a key business unit within a small company that does not differ significantly from the parent company.

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Definitions:

Total Debits

The sum of all debit entries in a financial account or ledger, representing expenses or assets.

Closing Process

The procedure used in accounting to close out accounts at the end of an accounting period, summarizing revenues and expenses and showing net income or loss.

Income Summary

An account to which all income statement account balances are transferred at the end of an accounting period to determine the net profit or loss.

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating a financial loss.