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

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Definitions:

Short Run

A period in economics during which at least one input is fixed and cannot be changed, limiting the ability of a firm to adjust to market changes.

Fixed Inputs

Resources used in the production process whose quantity cannot easily be changed in the short run, such as buildings and machinery.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus (with all other inputs held constant).

Bushels

A unit of volume that is used to measure agricultural commodities like grains and fruits.