Innovexa Solutions Ltd. operates in the technology sector and has four divisions: Innovate, Develop, Transform, and Elevate. Each division functions…

CA Intermediate · Financial Management and Strategic Management · RTP · May 2025
Innovexa Solutions Ltd. operates in the technology sector and has four divisions: Innovate, Develop, Transform, and Elevate. Each division functions as an independent product center while also contributing to the company's flagship product, TechSphere. Every division has its own set of activities, managed by a respective division head, who is responsible for the product line's performance and profitability. While competing in different market segments, each division leverages its own unique resources and capabilities to maintain a competitive edge. This type of organizational structure is known as:
(A) Network structure
(B) Divisional structure
(C) Multi-divisional structure
(D) Strategic Business Unit (SBU)

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Strategic Business Unit (SBU)

Topics: Part-A: Financial Management

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