Swift Stocks Faced with Rapidly Growing Business, Swift Stocks, Inc., a Global

question 143

Multiple Choice

Swift Stocks
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an online stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share, but it faces a very high business growth rate. In the brokerage industry, the competition is fierce and all players are cutting their online commission rates.
-According to the BCG matrix, Swift Stocks' traditional brokerage business could be classified as a:

• A) cash cow.
• B) dog.
• C) star.
• D) question mark.
• E) threat.

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Definitions:

Consolidation

Consolidation is the process of combining multiple financial statements from different subsidiaries or related companies into a single financial statement of the parent company.

Return

The financial outcome of an investment over an agreed-upon time, stated as a portion of the investment's cost price.

Telecom Services

Services provided by companies that enable communication over distances via telephone, internet, cable, and broadcasting.

Money Center Banks

Large financial institutions that offer a wide range of financial services and are typically located in major economic centers.