Vertigo Is an Electronics Company

question 7

Multiple Choice

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?

• A) Electra-a home entertainment system that has a strong market share in a market that is likely to expand in the future
• B) SoLo-a CD player that has a very low market share in a market that is shrinking rapidly
• C) Blue-a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily
• D) Kindle Fire-a children's iPad that has a high market share in a market that is not expected to grow significantly
• E) SpinDrive-a car audio system that has a high market share in a market that has been growing constantly

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Definitions:

Straight-Line Depreciation

A technique for computing an asset's depreciation that presumes the asset depreciates by a consistent amount annually throughout its expected lifespan.

Expansion Project

An expansion project involves undertaking new initiatives or investing in resources to grow a business or increase its capacity.

Crossover Point

The crossover point is the moment when two or more alternatives have the same value or cost, often used in financial analysis to determine when an investment will start to be profitable.