Which of the Following Is a Limitation of the Growth-Share

question 11

Multiple Choice

Which of the following is a limitation of the growth-share matrix?

• A)Since the matrix uses multiple variables as a basis for categorising a firm's business,it is complex to understand.
• B)Outcomes of this analysis are highly sensitive to variations in how growth and share are measured.
• C)The matrix is unable to analyse the impact of investing resources in different businesses on the firm's future earnings.
• D)The model fails to consider that firms can generate cash from businesses with strong competitive positions in mature markets.

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Definitions:

Credit Period

The duration of time a buyer has to pay a supplier for purchases without incurring interest or penalties.

Perishable

A perishable item is one that has a limited lifespan and can deteriorate or expire, often food, flowers, or medicine.

Buyer's Inventory

The stock of goods a purchaser has on hand, which represents a current asset on the balance sheet that is intended for resale or use in production.

Credit Terms

The conditions, including payment timing and interest, under which credit will be extended to a borrower.