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:

Government Intervention

This involves actions taken by a government to affect the economy beyond the basic regulation of fraud and enforcement of contracts, which can include tariffs, subsidies, and adjustments to interest rates.

Wages and Prices

The relationship between the payment workers receive for their labor and the cost of goods or services in the economy.

Rational Expectations Theory

The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period.