When an SBU is created all of the following occurs except:
A) A new layer of management is inserted into the organization
B) The organization places less of focus on the entire corporation since the SBUs are now the focus
C) Businesses that are grouped together in the SBU have a reasonable foundation for that grouping
D) The head of each business reports to the SBU head not to the CEO directly
E) Greater bureaucracy is created

Question

Quizplus · Accepted Answer

The creation of an SBU does not necessarily mean that the organization places less focus on the entire corporation; rather, it allows for more specialized management within the SBU while still aligning with corporate goals.

When an SBU Is Created All of the Following Occurs