Which of the Following Statements Is True in the Context

question 81

Multiple Choice

Which of the following statements is true in the context of the BCG growth-share matrix?

• A) Stars often need heavy investment to finance their rapid growth in a market.
• B) The positions of SBUs in the growth-share matrix rarely change over time.
• C) The income from one SBU cannot be used to support other business units.
• D) Dogs promise to be large sources of cash.
• E) Cash cows typically turn into stars.

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Definitions:

High-Growth Markets

markets characterized by a significant rate of growth, often offering substantial opportunities for investment and business expansion.

BCG Matrix

A strategic business tool designed by the Boston Consulting Group to aid companies in analyzing their business units or product lines based on market growth and market share.

Stars

Employees or units within an organization that perform exceptionally well and are often seen as key contributors to its success.

Stars

In a business context, this term usually relates to products or business units with high market share in fast-growing markets. In astronomy, stars are celestial bodies that emit light and heat from nuclear reactions.