Which of the following is a characteristic of a strategic business unit structure?
A)Each strategic business unit includes businesses that have something in common
B)Strategic business units are formed based on whether they are fast growing or slow growing
C)All of the businesses in a strategic business unit sell to a common group of customers
D)They are very similar to a matrix structure
E)None of the above

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) structure is one where a company is split into smaller units that focus on specific products or markets. Each SBU is essentially a self-contained business with its own strategy, goals, and budget. SBUs are typically formed based on shared markets, products, or technologies. Choice A is therefore the correct answer as it reflects this characteristic. Choices B, C, and D are incorrect as they do not reflect the defining characteristic of SBUs. Choice E is not applicable as there is at least one correct answer.

Which of the Following Is a Characteristic of a Strategic