What does 'business architecture' encompass?

Business architecture encompasses the fundamental organization of a business, which includes its governance structure, business processes, and technology. It serves as a blueprint that outlines how a business operates and how its various components interact to achieve strategic objectives. This holistic view allows organizations to align their operations with their overall strategy, ensuring that every part of the business works towards common goals.

The governance structure defines how decisions are made and who has authority within the organization. Business processes are the activities that produce value—these can include anything from production to customer service. Technology encompasses the tools and systems that support these processes, enabling efficiency and effectiveness.

By contrasting this with the other options, it's clear that while financial stability is important (as mentioned in the first choice), it doesn't capture the comprehensive nature of how a business is organized and operates. Similarly, marketing strategies are a critical function but are just one aspect of a business rather than its overall architecture. The physical layout of a business facility also falls short of encompassing the broader organizational principles, focusing instead on a specific element rather than the entire structure. Thus, the correct choice highlights the essential elements that define a business's framework and operational effectiveness.