According to the Boston Consulting Group's Growth Share Matrix, Which

question 37

Multiple Choice

According to the Boston Consulting Group's growth share matrix, which of the following is true of stars?

• A)They are business units that have high share but low growth and which can generate large cash flows that can be used to fund growth businesses.
• B)They are business units that combine high share with high growth and smart managers should invest heavily in these units to improve their position over time.
• C)They are business units that require significant investment and effective strategic management.
• D)They are business units that have low share and low growth and add little profitability to a company's overall portfolio businesses.

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Definitions:

World Price

The international market price of a product or commodity, influenced by global supply and demand conditions.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade, such as tariffs or quotas, encouraging international commerce.

Imported

Brought into a country from abroad for the purpose of selling.

Net Welfare Loss

Describes the reduction in social welfare, often resulting from inefficiencies such as taxes, subsidies, tariffs, or monopolies, which distort market equilibrium.