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Apart from Staging instance Production instance is available.
This might be quite possible. Again, it depends on the organizational and technical complexity of both these BU's.
1. There can be different processes in different geographies in which your application might be used. Inorder to achieve this in a single instance of CRM On Demand.
There can be some fields that are specific to certain region, in that case you can use Roles, Access Profiles, Dynamic Layouts to change the Fields of the layouts which will allow the user to enter/read information specific to only that user.
2. Workflows can be used to trigger an event only for users in certain BU defined in your application.
Also the Sales Process is specific to a Role and by configuring them correctly you can make these processes fit your requirements.
3. There are somethings that always remain the same though, like Accounts, Contacts , other entities and the pre-defined relationships, their names. Off-course these can be modified but when modified they apply through the applications. So you won't be able to have different names to the Account entity in the Major BU and the subset BU.
I would suggest you get in touch with Oracle Expert Services if you are looking to get more details on how you can make best out of a single instance.