In the BCG Growth Share Matrix,the Suggested Strategy for Stars

question 35

Multiple Choice

In the BCG Growth Share Matrix,the suggested strategy for stars is to

• A) milk them to finance other businesses.
• B) invest large sums to gain a good market share.
• C) maintain position and after the market growth slows use the business to provide cash flow.
• D) not invest in them and to shift cash flow to other businesses.

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Definitions:

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from investment-related activities such as purchases and sales of physical assets or securities.

Cash Inflows

Funds being received by a business from any source, including sales, investment income, or financing activities.

Cash Outflows

Money leaving a business through expenses, investments, and other financial activities, reducing the cash balance.

Operating Activities

Business activities directly related to the production and delivery of goods and services, which are reflected in the cash flow statement.