Portfolio Management Frameworks,such as the BCG Matrix,share Which of the Following

question 33

Multiple Choice

Portfolio management frameworks,such as the BCG matrix,share which of the following characteristics?

• A) Businesses are plotted on a 3-dimensional grid.
• B) Grid dimensions are based on external environments and internal capabilities-market positions.
• C) Position in the matrix suggests a need for sharing synergies.
• D) They are most helpful in helping businesses develop types of competitive advantage.

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Definitions:

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional gain over the opportunity cost.

Perfectly Competitive Industry

An industry in which numerous small firms produce identical products, where no single firm can influence the market price, and all firms are price takers.

AC

Alternating current, a type of electrical current in which the flow of electric charge periodically reverses direction.

Government

The organization or system through which a community or society exercises authority and performs functions.