Which of the Following Statements Concerning Strategic Business Units (SBUs)

question 80

Multiple Choice

Which of the following statements concerning strategic business units (SBUs) is NOT TRUE?

• A) SBUs are organizational units within a larger company.
• B) SBUs are treated as separate profit centers.
• C) SBUs focus on some product-markets.
• D) By forming SBUs, a company acknowledges its similar business lines.
• E) SBUs that produce only average profits should be allowed to generate profits to support SBUs with better growth prospects.

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Definitions:

Network Node

An individual electronic device in a network that can send, receive, or forward information.

Amplifies Signal

A process or device that increases the power, voltage, or current of a signal.

Derivative Action

In control systems, a feedback mechanism that is proportional to the rate of change of the error signal, used to predict and stabilize future system behavior.

Error Signal

A signal proportional to the difference between the actual output and the desired output.