^Where else should he go?
UCSD might not have a 'business' major, nor is it known for business, but it is surely a top public university and taking any major related to business will give him good future prospects, whether he goes to grad school or joins a top firm.
Personally, I am going to major in Econ at UCSC, because I want to either go into business or law. Santa Cruz is not known for business either, but they have top professors and a beautiful campus. I chose UCSC over SDSU, which I assume is the college you have in mind, given your implying that he is going to UCSD just because it is a UC.
Going to a UC just because it is a UC isn't a bad idea actually, because the entire UC system is filled with superior professors and a broader range of more established programs.