Organizational units within a larger company which focus their efforts on selected product-markets and are treated as separate profit centers are called:
A) portfolios.
B) strategic business units.
C) BTUs.
D) functional departments.
E) basing points.

Question

Quizplus · Accepted Answer

Strategic business units (SBUs) are organizational units within a larger company that are responsible for a specific product or service and are treated as separate profit centers. SBUs have their own strategies, goals, and marketing plans, and are normally given autonomy to operate independently within the larger organization. The other options, portfolios, BTUs, functional departments, and basing points, are not commonly used to describe these types of organizational units.

Organizational Units Within a Larger Company Which Focus Their Efforts