Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep's competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as:
A) a product unit.
B) a functional unit.
C) an operational unit.
D) a strategic business unit.
E) none of these.

Question

Quizplus · Accepted Answer

Gatekeep can be classified as a strategic business unit (SBU) because it has its own unique mission and product line, and competes in a different market from its parent company, targeting a different customer base. SBUs have their own strategic plans, and are often evaluated separately from the parent company.

Gatekeep Utilities Is a Subsidiary of GW Enterprises