The Smartphone Division of the Large Consumer Electronics Company, True

question 63

Multiple Choice

The smartphone division of the large consumer electronics company, True Electra Inc., has a significant market share in the fast-growing cell phone market. If the company invests further into this division, it will be able to reap increased cash flows. In the Boston Consulting Group (BCG) growth-share matrix, the smartphone division of True Electra will be categorized under

• A) question marks.
• B) stars.
• C) cash cows.
• D) dogs.

---

Definitions:

Articles of Organization

Official papers submitted to state authorities to formally establish a limited liability company (LLC).

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

Certificate of Authority

A certificate of authority is an official document granting a company the license to do business in a particular jurisdiction outside of its original registration.

Franchise Agreements

are legal contracts between the owner of a trademark, brand, or business system (franchisor) and an individual or entity (franchisee), granting the right to operate a business under the franchisor's model and brand.