Final answer:
An SBU (Strategic Business Unit) is a standalone division of a conglomerate with its own profit-and-loss responsibility, operating as an independent entity within the larger business structure.
Step-by-step explanation:
The answer to the student's question is a) SBU (Strategic Business Unit). An SBU is best described as a standalone division of a larger conglomerate, with its own profit-and-loss responsibility.
In the context of business structures, a Strategic Business Unit operates as an independent entity within a larger corporate system. It must create its own business strategies and is accountable for its own performance. This concept is to be differentiated from a functional department, which is a subset of a business focused on a specific function such as marketing or HR; a subsidiary, which is a company completely or partially owned by another; and a holding company, which exists solely to own shares of other companies but does not necessarily manage them directly.
A conglomerate, like the one mentioned, diversifies its risks by owning multiple businesses which often operate as SBUs, helping the corporation to stabilize its overall financial performance.