All of the Following Are Limitations of the Boston Consulting

question 67

Multiple Choice

All of the following are limitations of the Boston Consulting Group (BCG) Matrix EXCEPT

• A) viewing every business as a star, cash cow, dog, or question mark can be an oversimplification.
• B) the matrix requires at least three years worth of data.
• C) the matrix does not reflect divisional or industry growth over time.
• D) the matrix does not allow a company to be classified as somewhere in between two categories.
• E) variables such as size of market and competitive advantages are not considered in the Matrix.

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Definitions:

Personal Finances

The management of an individual's money and financial decisions, including budgeting, investing, and planning for the future.

Cash Inflows

The total amount of money being transferred into a business, from sales, investments, or financing activities.

Financial Reporting Practices

Procedures and standards governing how a company's financial health and operations are recorded, summarized, and reported to stakeholders.

Budgeting System

A systematic approach to planning and controlling the financial resources of an organization or individual.