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

question 15

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.
-If Swift Stocks' traditional brokerage business were to face a declining business growth, it may need to be reclassified as a __________ on the BCG matrix.

• A) cash cow
• B) dog
• C) star
• D) question mark
• E) dead business

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Definitions:

Installment Sales

Revenue recognition method allowing income to be realized at the time of sale but received through regular payments over time.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Nontaxable Life Insurance

A type of life insurance policy where the proceeds paid on death or the cash value accumulation during the policyholder's lifetime are not subject to income taxes.