Business Unit Definition Finance

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Business unit definition finance. A part of a company that operates as a separate part of the whole business. Sbus generally operate autonomously within the firm with their own chief executive production and marketing staff etc but are usually subject to overall control by the firm s. Strategic business unit sbu a division of a multi product firm which represents a discrete area of business.

Sbus typically have a discrete marketing plan analysis of competition and marketing campaign even though they may be part of a larger business entity. An sbu may be a business unit within a larger corporation or it may be a business into itself or a branch. The term is applied loosely such that any team that manages products and services is typically considered a business unit.

In peoplesoft applications a business unit is an organization or organizational subset that is independent with regard to one or more accounting or operational functions. A department or team that manages revenue generating products and services. A business unit is an organizational structure such as a department or team that produces revenues and is responsible for costs.

The vision mission and objectives of the division are both distinct from the parent enterprise and elemental to the long term performance of the enterprise. What does business finance bu stand for. For example within unilever margarines and fats re present one sbu while soap powders and detergents represent another.

In business a strategic business unit sbu is a profit center which focuses on product offering and market segment. Each sbu is responsible for a group of interrelated products serving a core market. The business finance acronym abbreviation slang bu means business unit.