The Global Leader in the Cigarette Lighter Business Is French

question 140

Multiple Choice

The global leader in the cigarette lighter business is French company BIC,but the market is expected to decline in coming years as fewer people take up smoking.Realizing these factors,Gillette decided to sell its Cricket lighter division to Swedish Match.According to the BCG matrix,Gillette viewed Cricket as a ________.

• A)question mark
• B)sleeping giant
• C)cash cow
• D)dog

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Definitions:

Consolidation Method

An accounting technique used by firms to combine the financial statements of subsidiaries with those of the parent company to present as one entity.

Equity Securities

Financial instruments like stocks that represent ownership interest in a company or rights to acquire such an interest.

Insignificant Influence

A situation where an investor does not have enough impact on a business to affect its decisions or policies.

Dividend Revenue

Income received from owning shares in a company which distributes a portion of its earnings to its shareholders.