A Company, EricMotors, Has Three Business Units

question 63

Multiple Choice

A company, EricMotors, has three business units.Each of these business units performs all the value chain functions needed to pursue the business model successfully.What are these business units referred to as?

• A)Unilateral division
• B)Matrix division
• C)Product division
• D)Functional division
• E)Self-contained division

---

Definitions:

Operating Activities

Activities that relate to the day-to-day functions of a company involved in producing and selling its goods and services.

Cash Flow From Financing

This represents the net flows of cash that are used to fund a company, including debt, equity, and dividend payments.

Cash Flow From Extraordinary Events

The cash generated or used by a company from events that are unusual, infrequent, and not likely to happen in the foreseeable future.

Cash Flow From Investment Activities

A section of a company's cash flow statement that shows the cash spent on and received from investment activities, reflecting how much is invested in the business.