Which of the following statements is true of strategic business units (SBUs)?
a. Each SBU of a company typically has its own return on investment.
b. All SBUs of a company share the same goals and use the same strategies.
c. All SBUs of a company target the same market segment.
d. SBUs do not perform manufacturing functions.
ANSWER: a
When properly created, a strategic business unit has a distinct mission and a specific target market. Each SBU has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding.
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