BMIS – L1 – SA – Q2.2 – Business and Organisational Structure

A strategic business unit is a type of entrepreneurial organisation. TRUE or FALSE?

A   True

B   False

B

Explanation:
A strategic business unit (SBU) is a large division within a divisionalised structure, operating semi-independently with its own strategy and goals. An entrepreneurial organisation, however, is typically smaller, flexible, and led by a single decision-maker with a flat structure. SBUs are not classified as entrepreneurial organisations due to their size and integration within a larger corporate structure. Thus, the statement is false.