When Using a BCG Matrix, a Business That Currently Holds

question 103

Multiple Choice

When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a

• A)Star.
• B)Dog.
• C)Cash Cow.
• D)Question Mark.

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Definitions:

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, indicating the liquidity available for expansion or dividend distribution.

Corporate Tax Rate

The percentage of a corporation's income that is seized by the government as tax.

Depreciation

The reduction in value of an asset over time, particularly in respect of wear and tear.

Expected Return

Expected return is the anticipated value or profit generated by an investment in the future, considering the potential risks and rewards.