Frappe operates as a strategic business unit (SBU)under More or Less Inc.,a home-furnishings manufacturer.From this information,it may be reasonable to infer that
A) Frappe does not have its own profit and loss responsibility.
B) Frappe is dependent on the other SBUs in More or Less Inc.
C) Frappe has a matrix organizational structure.
D) Frappe is led by its own CEO (or equivalent general manager).

Question

Quizplus · Accepted Answer

From this information, it may be reasonable to infer that Frappe is led by its own CEO (or equivalent general manager). The multidivisional structure (or M-form) consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility. Each SBU is operated more or less independently from one another, and each is led by a CEO (or equivalent general manager) who is responsible for the unit's business strategy and its day-to-day operations.

Frappe Operates as a Strategic Business Unit (SBU)under More or Less