Which of the Following Is Not One of the Limitations

question 101

Multiple Choice

Which of the following is not one of the limitations of the BCG Growth-Share Matrix?

• A) It is too simplistic.
• B) The link between market share and profitability is questionable.
• C) Growth rate is only one aspect of industry attractiveness.
• D) The market leader is ignored in the analysis.
• E) Small competitors with fast-growing market share are ignored.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.