While Hybrid Vehicles Are Very Fuel-Efficient, They Are Also Expensive

question 176

Multiple Choice

While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?

• A) The hybrid Civic is a star; the Accord is a cash cow.
• B) The hybrid Civic is a cash cow; the Accord is a star.
• C) Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows.
• D) The hybrid Civic is a dog; the Accord is a cash cow.
• E) The hybrid Civic is a dog; the Accord is a star.

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Definitions:

LLC

stands for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Joint Venture

A business arrangement in which two or more parties agree to pool resources for the purpose of accomplishing a specific task.

Partnership

A legal arrangement where two or more persons agree to share the profits of a business which they run together.

Malpractice

Failure of a professional to perform their duties to the required standard of care, resulting in harm to their client or patient.