The term "business unit" refers to a part or component of an organization that is responsible for generating revenue and has its own management team. It can be thought of as a smaller, self-contained division within a larger company, with its own goals, objectives, and strategies. Business units are often used by companies to organize their operations in a way that allows them to focus on specific products or services, target markets, or geographic regions. By breaking down the organization into smaller, more manageable parts, businesses can better align resources with opportunities and improve overall performance.