How to Define a Business Unit

Series Summary

Starting a business requires the utmost organization and planning. Beyond conceptualizing a business plan and getting the ball rolling, there are employees to compensate, books to keep and bills to pay. It is the small business owners' responsibility to monitor every detail that takes place in their business. It can be strenuous work to start a new business, but keeping organized and accurate is the foundation to a successful company. In this free video series on business, a certified public accountant explains business and accounting terms. Find out how to define a business unit, matrix structure and payback period. Get information on the definitions of capital expenditure, inventory turn and gross profit. Finally, learn to define PERT, retail margins and simple interest with the help of these free videos.

Video Transcript

"Let's define a business unit. A, a business unit is a separate and distinct part of an enterprise with its own books and records. Let us say a division of a company with its own manager, its own staff, and its own, pursuit of profit. The, a good example might be, within a large company like Taco Bell. A business unit within Taco Bell might be a region with ten stores, or twenty stores or fifty stores whatever it might be, with its own management its own books and records its own accountability.That's it."