A Strategic Business Unit Is

question 1

Multiple Choice

A strategic business unit is:

• A) a cost centre.
• B) either a revenue centre or a profit centre.
• C) either a revenue centre or an investment centre.
• D) either a profit centre or an investment centre.

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Definitions:

Shut Down

A short-term decision by a firm to cease operations because current operation is not covering variable costs.

Firm

An organization that produces goods or provides services, usually with the aim of making a profit.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Minimum Return

The lowest expected or required return on an investment over a specified period.