A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) is essentially a self-contained business entity within a larger organization that has its own vision, mission, goals, and strategy. It is designed to be self-supporting in terms of sales, markets, production, and other resources with autonomy in decision making. Therefore, an SBU is supposed to operate as a profit center with its own revenue, expenses, profits, and losses.

A Strategic Business Unit Is Not Self-Supporting in Terms of Sales