The term 'strategic business unit' is often used to describe a(n):
A) investment centre.
B) revenue centre.
C) profit centre.
D) cost centre.

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) is a standalone division or unit within a larger company that operates independently with its own business strategy and objectives. It is typically responsible for its own profits and losses and has control over its resources and decision-making processes. Therefore, an SBU can be considered an investment centre, where resources are allocated based on the potential for return on investment. Options B, C, and D do not accurately describe the nature of an SBU.

The Term 'Strategic Business Unit' Is Often Used to Describe