Frappe Operates as a Strategic Business Unit (SBU)under More or Less

question 110

Multiple Choice

Frappe operates as a strategic business unit (SBU) under More or Less Inc.,a home-furnishings manufacturer.From this information,it may be reasonable to infer that

• A) Frappe does not have its own profit and loss responsibility.
• B) Frappe is dependent on the other SBUs in More or Less Inc.
• C) Frappe has a matrix organizational structure.
• D) Frappe is led by its own CEO (or equivalent general manager).

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Definitions:

Lapse

The termination or expiration of a legal right, policy, or agreement due to the passage of time or inaction.

Rescission

The act of unilaterally terminating a contract and returning all parties involved to the positions they were in prior to entering the contract.

Pre-Approved

Describes a preliminary endorsement, often in the context of finance, indicating eligibility for certain benefits or offers without final authorization.

Death Benefit

A sum of money paid by an insurance policy or retirement plan to the beneficiary upon the death of the insured person or plan holder.