The Boston Consulting Group Uses Business Portfolio Analysis to Quantify

question 207

Multiple Choice

The Boston Consulting Group uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) or offerings

• A) as if each were a separate investment.
• B) to establish their worth to society at large.
• C) to determine which would be suited for a SWOT analysis.
• D) to determine which units are candidates for diversification analysis.
• E) to determine which units can be divided into smaller, tactical business units.

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Definitions:

Total Profit

The financial gain made in a transaction or over a period of time, which equals total revenues minus total costs.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues, representing the additional value created beyond all resource costs.

Accounting Profits

The total revenue of a company minus the explicit costs and depreciation expenses.

Total Costs

Total costs represent the complete sum of all expenses incurred by a business in the production of goods or services, including both fixed and variable costs.