Gillette Operates Numerous Strategic Business Units

question 149

Multiple Choice

Gillette operates numerous strategic business units. Most of its units in the personal care division have a small market share but high business growth. These units are classified as __________ on the BCG matrix.

• A) dogs
• B) question marks
• C) stars
• D) cash cows
• E) none of these

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Definitions:

Gross Margin

A company's revenue minus its cost of goods sold, divided by revenue, expressed as a percentage, indicating the percentage of revenue that exceeds the cost of goods sold.

Inventory

Inventory comprises the goods and materials a business holds for the purpose of resale or production.

Consolidated Net Income

The total earnings of a corporation, after taxes and expenses, including its subsidiaries, presented in a single financial statement.

Comprehensive Income

A measure of all changes in equity during a period except those resulting from investments by and distributions to owners.