Question

What is true about a business area?

1) Is is used for external reporting
2) It is an internal division of an enterprise
3) It helps management monitor performance

Answer 1

A business area is an internal division of an enterprise that helps management monitor performance. So, the correct answer is option 3.

Step-by-step explanation:

A business area is an internal division of an enterprise that helps management monitor performance. It is not used for external reporting, as external reporting typically focuses on the overall financial performance of the entire enterprise, rather than specific divisions or areas within the business. Business areas are created to streamline operations, allocate resources effectively, and track the performance of different aspects of the business.

So, the correct answer is option 3.