Within a business organisation, a profit centre that is self-supporting in terms of sales, markets, production and other resources is known as a:
A)profit entity.
B)strategic business unit.
C)marketing program.
D)small business.
E)diversified corporation.

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) is a profit centre that operates independently and is responsible for its own sales, marketing, production, and other resources. SBUs are typically created within larger organizations to focus on a specific product or market area and are often evaluated on their own performance and profitability. Therefore, B is the best choice as it accurately defines the given scenario. The other options do not fully describe a self-supporting profit center.

Within a Business Organisation, a Profit Centre That Is Self-Supporting