Using the Boston Consulting Group (BCG) Portfolio Matrix

question 13

Multiple Choice

Using the Boston Consulting Group (BCG) portfolio matrix:

• A) businesses with low market growth and a low competitive position are designated as dogs.
• B) businesses with low market growth and a low competitive position are designated as cows.
• C) businesses with low market growth and a low competitive position are designated as question marks.
• D) none of the above

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Definitions:

Economic Losses

Occurs when a company's total costs exceed its total revenues, indicating a negative economic profit.

Market Price

The ongoing rate at which an asset or service is being traded for in a certain marketplace.

Normal Profits

The minimum level of profit needed for a company to remain competitive in the market, often considered as the break-even point.

Pure Competition

A market structure characterized by a large number of small firms, homogeneous products, and ease of entry and exit, leading to price taking behavior.