Explain How Strategic Business Units Are Evaluated Using the Boston

question 94

Essay

Explain how strategic business units are evaluated using the Boston Consulting Group matrix.

Understand the basic principles and types of property and insurance contracts.

Differentiate between tangible and intangible property.

Know the conditions under which gifts can be made and their legal effects.

Distinguish between real and personal property and the concept of fixtures.

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Definitions:

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life.

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.