An internationally known food-processing company has acquired a mineral mining company.The decision to acquire the mining company is considered strategic based on the anticipated growing demand for the minerals used to create the packages for the company’s products. The miningoperation continues to be run by its local management group, which makes all its own investmentdecisions, independent of the management of the food processing company.The mining company described above is most likely what type of strategic business unit (SBU)?a. Cost centerb. Revenue centerc. Profit centerd. Investment center
An internationally known food-processing company has acquired a mineral mining company.The decision to acquire the mining company is considered strategic based on the anticipated growing demand for the minerals used to create the packages for the company’s products. The miningoperation continues to be run by its local management group, which makes all its own investmentdecisions, independent of the management of the food processing company.The mining company described above is most likely what type of strategic business unit (SBU)?a. Cost centerb. Revenue centerc. Profit centerd. Investment center
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An internationally known food-processing company has acquired a mineral mining company.
The decision to acquire the mining company is considered strategic based on the anticipated growing demand for the minerals used to create the packages for the company’s products. The mining
operation continues to be run by its local management group, which makes all its own investment
decisions, independent of the management of the food processing company.
The mining company described above is most likely what type of strategic business unit (SBU)?
a. Cost center
b. Revenue center
c. Profit center
d. Investment center
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