When properly created, a strategic business unit (SBU):
a. has a specific target market.
b. plans collaboratively with other SBUs of the company.
c. has a maximum of hundred employees.
d. shares the mission of its parent company.
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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