The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization

question 302

Multiple Choice

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.In a growth-share matrix,the horizontal axis of the matrix indicates

• A)the annual rate of growth of the SBU's industry.
• B)the relative dollar market share of the largest competitor.
• C)the annual rate of growth of the firm's largest competitor.
• D)the relative unit market share of the smallest competitor.
• E)the annual rate of growth of the firm itself.

---

Definitions:

Depreciable Cost

The difference between a fixed asset’s initial cost and its residual value.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate; it applies this rate to the book value of the asset at the beginning of each year.

Depreciation

The process by which a business spreads out the cost of a capital asset over its expected useful life.