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What is a business unit?

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What does the term business unit mean when it's used in a functional organization? Is the term synonymous with departments? And, if the latter is correct, then can we say that IT is a business unit?
asked 4 years ago by anonymous

1 Answer

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A business unit is essentially an independently functioning profit and loss center which may be a department.  IT could be a business unit but is more likely a support function or department. IT might be a business unit if it sells hosting, programming, or other IT related products and services.
answered 4 years ago by sdcapmp (45,840 points)

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