The BCG Matrix Is Designed Specifically to Enhance Which Type

question 72

Multiple Choice

The BCG Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies?

• A) Companies with more than one division
• B) Large companies
• C) Companies with annual sales greater than $1 million
• D) Companies with annual sales of less than $1 million
• E) All companies

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Definitions:

Diversify Risk

The strategy of spreading investments across various sectors or assets to reduce the overall risk exposure.

Operating Leases

Agreements that allow one to use an asset for a specified period without owning it, typically with lower monthly payments than a finance lease.

Zero Cash Balances

A company's financial situation where the cash account balance reaches zero, often intentionally managed through cash sweep accounts to optimize liquidity.

Debt Capital

Funds borrowed by an entity that must be repaid over time, typically with interest.