Which of the Following Is True About a Star SBU

question 52

Multiple Choice

Which of the following is true about a star SBU?

• A) Star SBUs may barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs.
• B) Star SBUs provide the organization with large amounts of cash because their market is not growing significantly.
• C) An SBU that is a star has a small share of a high-growth market.
• D) An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
• E) Because the market of star SBUs is not growing significantly, the cash is generally used to meet the financial demands of the organization in other areas.

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Definitions:

Customer Deposits

Funds placed by customers with a company, often in the context of financial services, which may be used for further transactions or withdrawn later.

Maximize Profits

The objective of optimizing the difference between total revenues and total costs to achieve the highest possible financial gain.

Board of Governors

A leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the bank's policies and operations.

Appointed

A term referring to individuals who have been selected and assigned roles or positions, often within a governmental or organizational setting, without requiring an election or competitive selection process.