Subgroups of a Single Business or Collection of Related Businesses

question 43

Multiple Choice

Subgroups of a single business or collection of related businesses within a larger organization are referred to as:

• A) strategic marketing organizations
• B) strategic subgroups
• C) market segments
• D) business segments
• E) strategic business units

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes towards covering fixed costs and generating profit.

Variable Costs

Charges that adjust in relation to the quantity of goods or services manufactured by a corporation.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent, salaries, and insurance.

Composite Unit

A measurement or quantity combining two or more units to represent a product or system's multiple aspects.