The Boston Consulting Group (BCG) Growth-Share Matrix Locates a Firm's

question 68

Multiple Choice

The Boston Consulting Group (BCG) growth-share matrix locates a firm's individual strategic business units (SBUs) in which two dimensions?

• A) start-up capital required and stage of industry life cycle
• B) relative market share and speed of market growth
• C) economic value created and costs incurred
• D) amount of debt financing and equity financing

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for resources or services used in the production process.

Accounting Profits

Represents the difference between total revenue and explicit costs of a firm.

Economic Profit

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used, often considered in terms of exceeding the company's normal profit level.

Entrepreneur's Talent

The unique set of skills, insights, and abilities that an entrepreneur possesses, contributing to their success in creating and running businesses.