The BCG Approach to Portfolio Analysis Is Less Likely to Provide

question 119

Multiple Choice

The BCG approach to portfolio analysis is less likely to provide a useful framework for analysis when which of the following conditions is evident?

• A)It is difficult to define the organisational SBUs.
• B)It is difficult to measure market share.
• C)It is difficult to measure market growth rates.
• D)There are no direct competitors.
• E)All of the above.

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Definitions:

Required Return

Required return is the minimum expected return investors demand as compensation for the risk of investing in a particular security or portfolio.

Straight Voting

A voting system for electing directors where shareholders must vote for each board position individually, allowing majority shareholders to dominate elections.

Cumulative Voting

Cumulative Voting is a voting system that allows shareholders to allocate their votes in a flexible manner among one or more candidates during the election of a company's directors, enhancing minority shareholders' representation.